After everyone found out that Apple wouldn't pay royalties for record companies, artists, writers and producers during the testing period of the Apple Music (three months), several independent artists complained a lot. Besides them, Taylor Swift (despite being a controversial name, undeniably one of the most recognized and famous singers today) also decided to confront Ma.
Shortly thereafter, Eddy Cue (Apple's senior vice president) revealed that the company had decided to change its mind and that it would pay for music rights during the trial. Because those who think that this soap opera is finished are wrong.
According to Wall Street Journal, Apple did not reveal how much to pay royalties during that period, but reported that the amounts will increase once customers start paying for subscriptions.
The transfer of royalties of the service streaming as a whole it is already defined (71.5% of the subscription fee in the USA and slightly higher in the rest of the world), so we can conclude that the amounts that will be paid during the testing phase will be less than this.
The big problem, as we can see, is that the entire transfer calculated based on the amount raised with the subscriptions. If no one is paying (in the first three months of the service, for example), how will that account be made? For these and other reasons, Apple decided to transfer 1.5% more than the streaming competitors, precisely to cover this testing period. The strategy, however, did not work.
Apple Musics higher royalty rate does indeed make up for the longer free trial 8 years into the paid subscription. pic.twitter.com/BQ5tUH2kdT
– Michael DeGusta (@degusta) June 22, 2015
Michael DeGusta made some calculations and found that in fact artists will earn more with Apple Music, but that this difference will only happen after 8 years and 4 months.
It is worth noting that not everyone was dissatisfied with the business model previously suggested by Apple. The band Metallica, which has had friction with Apple in the past and only made their music available on the iTunes Store in 2006, three years after the launch of the digital music store, proved to be very comfortable, also saying that they are very confident with the future of Apple Music.
This story is far from over
(via 9to5Mac: 1, 2)