Independent studios and major labels will earn on iTunes Radio is almost on an equal footing

According to information from the Wall Street Journal, Apple music labels sent the agreement to the recording studio, where specified royalties and a percentage of the advertising revenue for the placement of music on iTunes Radio. It is reported that the rules of cooperation with the major labels do not differ from the principles of working with independent studios.

Apple's proposal is much more tempting than the 0.12 cents that Pandora pays copyright holders for each song playback. According to the Wall Street Journal, Apple promises to pay 0.13 cents for each play plus the proportional presence of the label in the iTunes share of 15% iTunes Radio advertising revenue. The following year, these figures will increase to 0.14 cents and 19%. Also refers to a kind of pre-payment in cash, which will receive a Universal Music Group, Warner Music Group and Sony Music Entertainment.

The Cupertino warning labels that are not going to pay for listening, which lasted less than 20 seconds. However, Apple itself is limited to two such cases per hour for each user. The company also reserves the right not to pay anyone at all during the beta service, which can be stretched up to 120 days.

It is reported that Apple does not expect to receive in the near future significant revenue from iTunes Radio, but plan thanks to a new service to significantly increase sales revenue in iTunes, as well as to raise even higher iPod sales and iPhone.