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US indie labels getting 'significantly inferior' contract terms for iTunes Radio - report

Tom Pakinkis
iTunes Radio

Independent labels in the US are being given “inferior” contract terms for iTunes Radio inclusion with little room for negotiation, according to a report.

Digital Music News sources from several indie labels and distributors, have said that Apple is sending “pre-filled, inferior contract terms” to indies.

The labels are being handed “significantly less favourable terms than what the majors are reportedly receiving,” according to one source, with another saying “[Apple] will not make much in the agreement negotiable, if anything.”

DMN says that “the basic payout for indies seems to be $0.0013 per ‘royalty-bearing stream’ with marginally higher rates for premium, iMatch subscriber streams. That rate increases to $0.0014 in year two.”

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Tags: itunes, indies, iTunes Radio

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