Apple which is the most famous company in the whole world, has recently made a proposal to the Copyright Royalty Board of USA which is expected to have dual impacts. It will be profit for one group and loss for the other. Apple with an aim to simplify the present complex structure of payment of the artists, publishers and songwriters has proposed this new plan which will help the creative bunch but will hamper the future of music streamers.

The Proposal

Apple is always known for its support towards the creative people who are deprived presently because of the current complex structure where the money is divided among many people. Currently, the streamers pay between 10.5 and 12% of their revenue according to a rule which Apple does not have to pay as it handles its own dealings.

Apple proposed the rate of payment to be 9.1 cent per hundred plays. If this rate be fixed then it will cause great problems to streaming companies like Youtube and Spotify who offer free songs to their users but the publishers, songwriters, artists and labels will have a great time indeed.

The Future

Spotify is a veteran company and has twice the number of subscribers than that of Apple Music. But Apple Music which is a budding platform has 15 millions of paid subscribers within a year of its launch which hints that it can touch Spotify any day soon. Spotify is already facing loss and if Apple’s proposal be accepted, then it will be in huge trouble.

However, nothing can be said surely as the Royalty Board with three judges in the panel are in nascent stage of discussion about this revenue system of 2018 – 2020. It’s not sure whether they will pay heed to Apple’s proposal or not.