iTunes Radio $0.0013 per stream royalty for indies confirmed

Apple will pay indie labels $0.0013 per play on its iTunes Radio plus 15% of net advertising in the first year but won’t pay anything for songs skipped within the first 20 seconds by users.

That’s according to a copy of the licensing agreement between Apple and indie labels obtained by Billboard and Digital Music News, which adds that royalty rates will increase to $0.0014 per play plus 19% of net advertising revenues in subsequent years.

Billboard cites one major label source as being offered a first year payment of $0.001325 per play, as a point of comparison – roughly 1.9% higher than that offered to indies.

Earlier this month, indies in the US suggested that the iTunes Radio licensing agreement offered to indies was significantly inferior to that of the indies.

Noises from Merlin and Beggars have however suggested little concern elsewhere, with both saying they would be surprised if Apple didn’t treat independent labels fairly.

Source: Music Week