Apple Music has won new contracts from major record companies including Universal Music, Sony Music, and Warner Music. This also means that the music of pop singers such as Taylor Swift, Lizzo, and Adele can continue to play in the ‘Apple Music’ service.
Earlier, Apple Corps had a preliminary discussion with the record company on whether to launch a ‘media content bundle package’ for Apple Music and Apple TV+. If the agreement is reached, then users will be able to subscribe to Apple Music and Apple TV+ services at a lower price. However, this contract did not bundle the terms of Apple TV+.
Apple renews contracts with major record companies every few years to determine the rights to updated songs. Apple has signed multi-year agreements with multiple record companies. But it is said that Spotify, the competitor of ‘Apple Music’, has encountered difficulties.
Spotify has been in licensing negotiations with Universal Music and Warner Music. Record companies have been renewing existing agreements on a monthly basis. And they are working to reach agreement on new contracts.
As of last summer’s data, ‘Apple Music’ has 60 million paid subscribers. Since then, Apple has not released updated data, but Spotify says it has 113 million paid users.
Apple Music has a big share in Apple’s services revenue. Moreover, the iPhone maker has had a mission to expand it. Apple Services, including the App Store, iCloud, Music and TV+, made $46.3 billion in revenues for Apple last year, up from less than $30 billion in 2017.