Apple has reportedly inked a new licensing deal with Warner Music Group. Unnamed sources told Bloomberg that the updated arrangement will see Apple paying a smaller share of its revenue. The tech company may also be near to a similar deal update with Sony Music Entertainment, although does not appear to have progressed in talks with Universal Music Group.
Talks with Warner follow similar negotiations between the major labels and Spotify, which secured a lower rate of payment in exchange for windowing music to its paid tier. Apple’s deal appears to be centered around meeting subscriber targets for its Apple Music streaming service. According to Bloomberg, Apple may have its share of revenue paid to labels reduced from 58% to 55%, which would drop if it meets subscriber goals.