Apple is looking to lower music labels' revenue cut for Apple Music
For comparison, Apple currently gives music labels a cut of about 58%. This is more than any other music-streaming service on the market. Reportedly, these terms were meant to calm down labels who were concerned that Apple Music will drive revenue away from iTunes. These fears proved to be irrational, however. Digital music sales have indeed dropped in recent years, however they still account for 24% of music sales in the US.
According to Bloomberg, music labels are open to discussing their revenue cut, assuming Apple makes sure to promote iTunes in areas where streaming is not a viable option, be it due to slow mobile data speeds, or consumers that prefer to buy their music rather than stream it. Similar to the recent deal with Spotify, labels will also demand guaranteed subscription growth.
source: Bloomberg via BusinessInsider
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