Record companies earn less than 1 cent for music played on iTunes Radio

The terms of service for iTunes Radio, Apple’s streaming service, already circulate between independent labels. According to The Wall Street Journal, the apple company plans to pay $ 0.13 a cent to the record companies for each music run.

The value seems little, but, according to the newspaper, it is already more than other competing services. Pandora, for example, pays 0.12 cents per reproduction.

The advertising revenue is also prorated with the record companies. Apple, for example, distributes 15% of advertising revenue generated by music.

The values ​​are valid for the first year of iTunes Radio. After that period, Apple will pay 0.14 cents and increase distribution to 19% of revenue.

The newspaper points out that iTunes Radio should not make a lot of money from advertising, since the focus of the service will be to encourage people to buy music on iTunes, in addition to enriching iOS.

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