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  • Indie Music Labels from the UK Refuse to Agree with Apple Music's Terms


    Independent music labels from the UK are reportedly refusing to agree to Apple’s demand that they receive no royalties for songs played during Apple Music’s three-month free trial period. This is a sticking point that could leave the new streaming service without the support of some major artists at its launch.

    According to Todd Health, an industry lobbyist, the smaller labels wouldn’t be able to absorb the financial hit that would come with losing three months of download sales to consumers who switch to Apple Music. According to Health, a move like this would “literally put people out of business.” He added the following regarding the matter:

    If you are running a small label on tight margins you literally can't afford to do this free trial business. Their plan is clearly to move people over from downloads, which is fine, but it will mean us losing those revenues for three months.
    XL Recordings and Domino are among the labels who apparently failed to reach an agreement with Apple. This respectively counts out artists such as Adele and Arctic Monkeys along with several other signed artists.

    The free trial Apple is offering is also said to be a “bone of contention” during Apple’s negotiations with major US labels with Apple eventually prevailing thanks to a promise of higher-than-average royalty rates for paying customers. The Cupertino California company is expected to say 71.5% of revenue rights holders in the US with the sum rising as high as 73% abroad.

    Just as a reference, Apple Music will launch on June 30 for $9.99 per month or $14.99 per month for up to a family of six people. Are any of you looking forward to trying Apple Music out? Let us know in the comments section below!

    Source: The Telegraph
    This article was originally published in forum thread: Indie Music Labels from the UK Refuse to Agree with Apple Music's Terms started by Akshay Masand View original post
    Comments 1 Comment
    1. edwilk55's Avatar
      edwilk55 -
      With the volume of new users that Apple can and will bring to the subscription table, these guys are idiots if they don't agree. Millions of millions lost if they don't. Surely, they aren't stupid enough to give up the potential long term revenue stream over a small free trial period loss. Idiots!