iTunes Radio Terms: Labels Get 0.13 Cents Per Song For The First Year, 15% Of Respective Ad Revenue Share

iTunes Radio Terms: Labels Get 0.13 Cents Per Song For The First Year, 15% Of Respective Ad Revenue Share


iTunes Radio – Apple’s new music-streaming service set to launch officially with the release of iOS 7, later this year, will see the company pay the labels involved in providing their artist catalogs for streaming 0.13 cents per song for the first year, according to a new report.

The Wall Street Journal this week reveals that the service operates on providing commission to the labels on a per-song basis, while also seeing the labels take a cut from those audio and video iAds. In fact, the publication notes that as much as 15-percent of all net advertising revenue will be given to the labels, “proportionate to a given label’s share of the music played on iTunes.”

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That’s for the first year the service is live and operational. In the second year, this agreement will see the price per song bumped to 0.14 cents per song that is listened to by a user, in addition to 19% of that label’s share in song ad revenue.

Meanwhile, it appears Apple was able to finally hash out those issues regarding songs which shouldn’t be paid for, as MacRumors reports that “plays are unpaid if they are already in a listener’s iTunes library or part of an album they own.”

You may remember that, just a few days before Apple’s Worldwide Developer Conference, we reported that Apple had signed a deal with Sony Music. The label had reportedly previously abstained from signing the deal with Apple, due to wanting to have further “clarity” over how it would eventually be compensated by Apple for songs that are eventually “skipped” by users.