NEW YORK (Billboard) - Just days in advance its opening scheduled service iCloud, Apple was able to license agreements fixing of all four major record labels and music publishers.
In fact, he has probably done more: by agreeing to pay the big publishers cut of 12 percent of the iCloud income, it may set a new, plu digital standard payment for publishers, whose share of the income of a digital service is generally about 10% or less.
Apple CEO Steve Jobs and other frameworks provide details on iCloud service in a keynote presentation on June 6 annual Worldwide Developers Conference in San Francisco company.
Universal Music Group was the final major label to overcome function iCloud, according to sources familiar with the situation. Apple has agreed to pay the large houses of disks approximately 58% of income, his departure from Apple with about 30 per cent.
Sources say Universal and Sony Music Entertainment asked for 60% of income, but they suggest now that a last-minute compromise was reached to accommodate 12 per cent royalty rate paid to publishers.
Apple does not yet reach agreements with labels and independent publishers. Sources say that it will offer the same rate of 12% is paying major publishers indie publishers. However, Apple began negotiations with independent labels by offering them only a cup of 53 per cent of income. Some indie-label executives say that they're pushing on Apple for a higher cut.
During this time, Google is still negotiating with the major labels and publishers for its Beta cloud music service, which was unveiled on 11 may at the Conference Google I/o in San Francisco's. One of the obstacles to these discussions was the fact that Universal and Sony Music Entertainment were seeking income of 60 per cent cut, while Google has agreed to pay a share of 12 per cent of the income of large publishers and keep a 30 per cent for himself, according to the sources. Universal and Sony, these sources say, wanted publishers to receive a smaller share.
Is no all the industry observers agree that the majors are a play to reduce the share of the publishers. "Today, the majors want to obtain 80 percent of the income in the new digital agreements coming their way, so I'm guessing that the majors are attempting to reduce the share of Google and Apple," said a source familiar with the situation.
Although Google has offered major record companies and publishers like revenue cuts such as Apple, it does not perform almost the same effect of leverage with them. Shop of Apple's iTunes represented approximately 33% of the income of recorded music U.S. in 2010 (Billboard, May 14).
Disagreement on the splitting of income was not the only obstacle in the talks of Google, with some sources, noting that differences persist also on the progress and the requirements that the search giant is more active in the fight against music piracy.
Apple, Google and Amazon, which, like Google, launched a music service of cloud base without label and Publisher deals, want to offer services of scan-and-game-style locker, whereby they would analyze the libraries of digital music users and match, songs, services have licenses for in a centralized server, rather than require all users to download their music to a record of storage based on a cloud. The amount each pay service for individual tracks music rights holders depends on use, with payment is divided pro rata by actual parts.
(Edited by Chris Michaud)
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