Tesla wants to create a music streaming service, while Apple wants to pay labels less

Elon Musk TeslaTesla is reportedly in talks with major labels within the music industry about creating its very own music streaming service.

The music service would come bundled with the company’s vehicles and would be intended to work seamlessly with the cars’ already existing dashboard and internet connectivity.

“We believe it’s important to have an exceptional in-car experience so our customers can listen to the music they want from whatever source they choose,” a Tesla spokesperson told Recode. “Our goal is to simply achieve maximum happiness for our customers.”

Of course, Tesla could just integrate existing streaming services, such as Spotify, Apple Music or Tidal, but that’d be too easy, right? Tesla already has a deal with Spotify on its cars sold outside the US, so why not just extend the deal?

At the end of the day, record labels would prefer for Tesla to launch its own streaming service. The more that exist, the more revenue streams they have and the more control they have over where their artists’ music is consumed.

In other music streaming news, Apple is looking to reduce the share of revenue that record labels get from streaming to bring it more in line with what Spotify offers.

Under Apple’s current deal with record labels, they receive around 58 per cent of the revenue from Apple Music subscribers – compared to Spotify’s 52 per cent.

Labels are, according to Bloomberg, said to be open to a reduction in Apple’s rates, if the tech giant can ensure subscriber growth and meet other requirements.