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According to Rene Ritchie on MacBreak Weekly this was intensely debated within Apple and there was not universal agreement to withhold royalties during the 3 month trial. Apparently it was being debated up until the
last minute. I'd be curious to know which side Cue was on and if he made the final decision or if that came from Cook.
-Tin Foil Hat = 0n- This could be one of the most outstanding marketing ploys anyone has ever pulled off.
How is this for a hypothetical internal marketing discussion:

"Let's decide not to pay artists for those three months. Worst case we get away with it, save some money, and maybe upset a few JV players. BEST case, it gets called out by artists, we get national news coverage almost 24/7 of our upcoming service and FREE 3 months of trial, one of the world's most recognized artists gets involved for even more coverage. We then 'cave in' (air quotes to the room), get even more GOOD press for doing the 'right thing', and then all those hold outs praise us even more and sign on! It will be our marketing master piece!"

-Tin foil hat = OFF-

It's a stretch, but boy if it wasn't planned, Apple has a knack for falling into good outcomes.
 
It still boggles the mind that some think this is a "win" for Apple. In the grand scheme of things I don't think it will matter, but no company wants how the sausage gets made to be aired in public.
The only thing worse than being talked about is NOT being talked about. Doubly so when trying to gain traction on a new revenue stream that you are rolling out.
It seems pretty clear Apple's position was were not going pay but if people scream loud enough we'll do a 180 and just spin it as we care more about artists than the other guys do (and assume people won't see it for the BS spin it is).
Win win either way, wouldn't you say? Not knowing anything, I'd say some marketing folks have earned their bonus checks this year.
 
Kind of like Pings success, because you know, Apple.

Ping was a half-ass attempt at social media through music. Apple Music is "One More Thing" big. Although people aren't ecstatic for Apple Music yet, it's going to be popular through the roof. When Apple has focus, they have a pretty successful track record at creating successful productss
 
Of course the actual artists still get nothing -with the agents and agent's agents and agents and lawyers and lawyer's agents and agent's lawyers getting almost all the money.

Haven't read - may have missed but is Apple still going to pay the small % extra that they were going to in order to "make up" for the 3 months they weren't going to pay?
 
The lack of Indie signup was the real reason Apple changed direction on royalty fees, Swift is just getting the credit.

Would have been fine for Apple Music to launch a free trial without a Taylor Swift album music lovers don't care about but a disaster to launch with 50% of Spotifys music catalogue and a depleted search for music fans who actually like a diverse range of acts to find. The service would be DOA and the internet would be full of "Apple music doesn't even have artist X".
Yeah they were never going to launch w 50% of spotify's music catalog.

Do people still not get Spotify pays all artists significantly less than apple when you factor in the payout per average stream? There is a huge disparity and this was even the case if artists did not get paid for streams during the free trial.
 
Please, let's take the hindsight bias from the professionals in this echo chamber.

In reality, this has worked out better for artists than any deal the larger labels (who are supposed to care for their talents) could or even would care to work towards.
 
Hate to break it to you, but that album that "music lovers don't care about" probably brings in more revenue than everything else that "music lovers" do care about.

Gamers aren't the main consumers of video games, tech geeks aren't the main consumers of technology, and music lovers aren't the main consumers of music. Heck, mainstream consumers are the reason why Apple is as big as it is.

Yeah some people don't understand how the music business works. The top 50 artists will bring in more revenue/subscribers than the bottom 5,000 indie artist. It's how people consume music.
 
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All Access does have those artists. Google didn't have any drama because there was never a question of paying artists. Apple is the only company to try to not pay royalties during the free trials.
Google the company that appropriates other people IP until they complain? This is the same company that thought they should be able to scan books and display them on their site for free, while they generate ad income, and was surprised the authors and publishers where upset. and Google only announced their free tier this week.
 
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Yes, they do. The service might be funded with Ads, but at least the labels/artists are getting paid.

Spotify splits ad revenue on their ad tier, which equates to minuscule payouts to artists.

At no point in any of this have I seen confirmation that other services pay artists during the more traditional thirty day trial.

All I know is most Spotify users are ad supported so the artists are getting very tiny royalties, a portion of their paid subscribers are student accounts which pay artists a reduced royalty and even full fledged subscribers earn artists less money than Apple subscribers.

In total Spotify is essentially screwing artists out of lots of money compared to apple. Why don't people demand Spotify pay artists full royalties for their ad supported tier instead of sharing the relatively small amount of revenue? The only reason Spotify has an ad tier is to try and get people to subscribe to the full service. So by the same pressure applied to apple, why does Spotify get to run their marketing program on the back of the artists. Even worse any one consumer can only get 90 days on apple while they can stay on Spotify ad tier screwing artists forever.
 
I agree with the guy from Pandora who tweeted this is a theater. But hey, if Apple can spin this as we care more about the artists than the other guys I guess good for them. Still rings a bit hollow to me. If Apple could have gotten away with not paying for these 3 months they would have.
I still don't think they should have. In any partnership one partner doesn't pay the other, the bite the bullet together and then share the rewards. If the music is compelling enough to make them stay and keep listening, the artist will get a share of the profits. If they don't the stay no share, but if they liked the Artist they will buy it to keep. Itunes is savy enough to remind them to get a copy if they cancel the service. I wouldn't be surprised if the are not offered to do just that when canceling.
 
Just next to nothing which is why Taylor removed her catalog.

Yeah all these artist rights advocates really need to focus on abolishing Spotify's ad tier and student rate. These programs are really screwing artists.

Or do all these artist advocates only care when it involves apple, who already was going to end up paying artists more than Spotify regardless of the trial.

Let's see these music artist crusaders step up and do the right thing and protest Spotify who has been screwing artists for years. 60 million of spotify's 75 million users are on the ad tier which pay the artists almost nothing.

So come on crusaders. Don't make us think your fight for artist rights was just a blind attack on apple. Carry it through to the biggest streaming payout violators out there, Spotify.

It probably won't matter when all artists get much bigger checks from apple and they eventually demand Spotify pay them equitably. But why wait? Why not carry this momentum forward and continue to get the artists what they deserve and stop spotify's gratitious violation of artist rights.
 
"Let's decide not to pay artists for those three months. Worst case we get away with it, save some money, and maybe upset a few JV players. BEST case, it gets called out by artists, we get national news coverage almost 24/7 of our upcoming service and FREE 3 months of trial, one of the world's most recognized artists gets involved for even more coverage. We then 'cave in' (air quotes to the room), get even more GOOD press for doing the 'right thing', and then all those hold outs praise us even more and sign on! It will be our marketing master piece!"
I think this has been a huge discussion point between Apple and the major labels over the last months, which ultimately could have endangered Apple Music altogether. So I would be surprised if they had been doing this just "to see if it works".
It's a stretch, but boy if it wasn't planned, Apple has a knack for falling into good outcomes.
I wouldn't call it a knack. They decided basically at the last possible moment to do what is perceived as the "right thing". Had they waited any longer, it might have turned into a major publicity disaster, and I think they felt that the train was slowly leaving the station.

Apple has fallen into bad outcomes quite a few times as well - for example with "You're holding it wrong!" They have only been lucky that it has not affected their bottom line in a major way.
 
All Access does have those artists. Google didn't have any drama because there was never a question of paying artists. Apple is the only company to try to not pay royalties during the free trials.

So is Google paying apple level royalties in their ad supported songza service or will they be screwing the artists like Spotify does.
 
Kind of like Pings success, because you know, Apple.
Ping happened under Steve Jobs, so people refuse to believe that it ever existed (and failed).

If Apple Music fails, then those people will say "Well, it's all because of Tim Cook."
 
The lack of Indie signup was the real reason Apple changed direction on royalty fees, Swift is just getting the credit.

Would have been fine for Apple Music to launch a free trial without a Taylor Swift album music lovers don't care about but a disaster to launch with 50% of Spotifys music catalogue and a depleted search for music fans who actually like a diverse range of acts to find. The service would be DOA and the internet would be full of "Apple music doesn't even have artist X".
I said the same thing to Timmy and Eddy and TS on twitter.
 
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