Whether Apple Music will turn out to be the Spotify killer or not (or a serious contender for that matter), is yet unknown. However, what we do know, is that, thanks to Taylor Swift, Apple will now pay artists for their songs streamed by users in the free Apple Music trial period. While nothing has been set in stone yet, and negotiations are under way with several labels, The New York Times reports that Apple will pay 0.2 cent for the use of recordings. Executives in the music business said that this is more or less similar to what other services are offering, like Spotify.
The publication reports that “Apple had proposed raising its royalty rate slightly for paid streams — to 71.5 percent of revenue, from 70 percent — to make up for the loss of royalties during the trial period. Apple would still pay for downloads, but those would be competing with the free trials of the streaming feature, executives said, and many labels were upset by the prospect of three months of reduced income from the industry’s biggest retailer.”
This is a completely different approach than what the company had before Taylor Swift’s move. As a reminder, Apple did not want to pay artists while users were streaming their recordings during the free Apple Music trial period. However, Taylor Swift published an open letter that has apparently changed Apple’s mind (and probably the inclusion, or omission of her best selling album, 1989).
Next Tuesday, June 30, is when the service is supposed to go live, and we can expect more news from the behind the scenes operations of Apple Music.
source – pocketnow.com
image – pocketnow.com