Apple Music sign new deals with major labels but maybe not the ones they wanted
Apple’s new deals with the Big Three record labels don’t equip them for Apple TV+ bundles as they probably hoped.
The time of renewal was upon Apple Music to ensure that they could stream music from the three biggest record labels in the world. They’ve settled on new agreements with Sony Music, Warner and Universal.
The contracts are reportedly short-term so they Apple will be looking for a more definite deal later on. Their current deal wouldn’t cover the labels’ music in a bundle deal which it is reckoned is Apple’s plan to make their Netflix streaming competitor service Apple TV+ more appealing.
Spotify aren’t in a similar position with wanting bundles that encroach on the label’s priorities. Despite that, Spotify have recently had to settle with a short term agreement with both Warner Music and Universal Music. Sony Music however have finalised a deal with.
It’s not clear why the deals aren’t all solidified between labels and Spotify but it’s likely to do with their new incomes. Spotify are making a push in tailored advertising and pay for stream promotions which they’re hoping will create a new revenue stream. The company famously doesn’t make a profit yet.
It’s clear the big labels and streaming services still have things to iron out, even now as streaming is as massive as it is.