How doesn't it make sense? Apple Music has fewer paying subscribers than Spotify, Apple Music prices just like Spotify's prices vary per market, Spotify pays out 70% of revenue to royalties but Apple Music is able to pay much more per stream even though it has fewer subscribers.

Now think: where does the money to cover Apple Music paying royalties comes from? If they pay double what Spotify pay and Spotify is spending 70% of revenue on royalties, how can Apple Music pay double without costing double? Something has to cover, Apple Music is a loss leader product.

> EU would have a field day with it and Apple likes making money wherever it can find it.

Apple is making money through its aggregated services (iCloud + TV+ + Apple Music), if Apple Music is a loss leader but makes people contract the bundle which is a money maker for Apple, they will lose money on Music.