Apple wants to give record labels smaller revenue cut

Apple is looking give record labels a smaller share of revenue made from streaming with Apple Music, Bloomberg reports. Other streaming services, including Spotify, have made similar moves as turbulence in the streaming business looms.

Why it matters: Streaming businesses are continuing to grow adversely to revenue gains, which is why they are slashing revenue for record labels. Labels are for the most part tolerant, because of the promise of continued audience growth on streaming platforms. For Apple, the biggest challenge is ensuring growth on Apple Music won't cannibalize iTunes, which is more widely accessed in other markets.

Elsewhere in the market: YouTube just resigned a revenue share agreement with music creators, while other platforms, like Apple Music's main competitor Spotify, continue to negotiate better deals to land big names. Taylor Swift just joined Spotify after 2+ years of boycotting streaming.