Apple propose reforms to the way streaming services pay royalties

Apple's new proposals may bring an end to the long battle between artists and streaming services – and put Apple Music ahead of the competition.

In a recent filing made to the Copyright Royalty Board, Apple proposed that streaming services should pay 9.1 cents for every hundred plays in songwriting royalties. This simplified system was aimed at replacing the long and convoluted legislation which governs the rates at which companies are required to pay per stream to songwriters.

However, this wasn't simply a random proposal. If adopted, it would significantly increase the rates streaming services such as Spotify and Deezer would have to pay to songwriters. This would particularly hurt Spotify's revenue and flies directly in the face of their 'freemium' business model.

Conversely, the proposals would have little to no effect on Apple's own streaming service, Apple Music. This is due to the majority of its contracts with publishers being privately negotiated at a slightly higher rate. Apple Music's pay orientated approach have earned them many high profile supporters such as Taylor Swift who said, "Apple treated me like I was a voice of a creative community that they actually cared about."

Is Apple making a swing at its competitors? Or simply trying to help poor, starving artists like Taylor Swift? We don't know, but we're sure you can make a good guess...