Apple (AAPL) Stock Climbs, Proposing Simpler Royalties Payments
NEW YORK (TheStreet) -- Shares of Apple (AAPL) - Get Report are up 1.07% to $99.84 this morning after the company filed a proposal with the government that suggests simplifying streaming royalties payments for services like Spotify, Tidal or its own Apple Music.
The company suggested to the Copyright Royalty Board that services should pay 9.1 cents per 100 plays per song to artists. The current formula for payment is dictated by complex federal rules, leaving musicians unsure of what and how they're being paid, the New York Times reports.
The proposal, if accepted, would raise rates that rival streaming service Spotify pays. Spotify offers both paid and premium services, but Apple Music does not.
"An interactive stream has an inherent value regardless of the business model a service provider chooses," Apple said in the proposal statement.
Apple Music reported 15 million paid subscribers last month, with Spotify reporting 30 million paid subscribers and 70 million free users.
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Separately, TheStreet Ratings rated this stock as a "buy" with a ratings score of B.
The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, notable return on equity and expanding profit margins. TheStreet Ratings feels its strengths outweigh the fact that the company shows weak operating cash flow.
You can view the full analysis from the report here: AAPL
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.