Apple Music To Not Pay Royalties During Trial PeriodThursday, June 11th, 2015
Are you a recording artist who’s looking forward to the launch of Apple Music? After all, much of the talk is about how there will be no free tier (or “freeium” in industry speak), which can only be a good thing for bringing value back to music and artists, right? No so fast. As Exclaim.ca points out, via a leaked document obtained by Digital Music News, Apple’s plan is to not pay any royalties during the three month free trial period and even once it begins paying royalties on paid subscriptions, those rates will be lower than what is currently being paid by Apple’s streaming competitors.
Though music listeners may be excited to try out Apple Music when it launches later this month, a leaked document outlining royalty payments through the service may have artists a little less enthused. If the contract is to be believed, rights holders will be netting zero percent in royalties throughout Apple Music’s three-month free trial period. And when artists even do eventually get royalties, they will be significantly less than from other competing streaming services.
As previously reported, Apple Music launches through Apple devices on June 30 in more than 100 countries, with PCs and Android phones hopping aboard later in the fall. Users will be treated with a three-month, all-access pass before being offered a paid subscription.
A leaked document obtained by Digital Music News outlines that rights holders will not be paid out during this time. It’s explained, “For Trial Users, and for Comp Accounts that iTunes provides on a gratis basis, no license or royalty fees, including Fees, will be due to Company.”