Apple Still Hasn’t Contacted Indie Music Publishers for Streaming Rights

According to a Billboard music report, Apple has yet to contact any indie music publishers, leaving indie music publishers without a contract. It has been reported by music industry executives that Apple will offer publishers a headline rate of 13.5 percent of revenue, which is higher than the 12 percent it pays for iTunes Match and 10% it pays for iTunes Radio. This may not be as good as it sounds though.

“That free trial, with no payments being made to rights holders, precluded Apple from taking advantage of the statutory licenses that most interactive streaming services use. Under that statutory license, Apple must send notices of intent (NOIs) to publishers with a list of the songs they plan to use, and then make payment to publishers using a three-tier formula approved by the Copyright Royalty Board.”

Industry sources told Billboard that Apple is offering the higher rate to sell indie music publishers on their plan to hold off royalty payments until the three-month trial period to consumers ends.  This equates to a free trial with no payments made to rights holders, and this may not sit too well with them.

Do you think this is a good move on Apple’s part or do you think it will backfire and leave publishers seeking better alternatives?