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It's Apple's decision to have a free trial, not the artist's, so why doesn't Apple deal with it? If Tesco gives you free Kit Kats as part of a promotion, then they don't automatically expect Kit Kat to give them for free to Tesco. If you get a free 1 month trial of Photoshop, that doesn't mean the developers don't get paid for a month, it means Adobe figures it out from their own stock of money.

Without taking sides, and acknowledging the fact that Apple was short-sighted in drawing up the deals with record companies and artists, your examples are not quite accurate enough.
If Tesco gives away a free Kit-Kat, you can be sure that the promotion idea either started from the Kit-Kat's manufactures, or that Tesco is getting a deal from them. In other words, because the promotion is advantageous to both parties, they normally split the losses. In the case of Photoshop, Adobe are discounting their own product, and that is straight-forward advertising, which is part of the advertising budget for the launch of said product.
The Apple deal is a little bit like Tesco giving away Kit-Kats, so Apple expected to split the losses with the large record companies, because they could afford it, and also because they would have recouped the money with the higher royalty rates. In fact Apple, in the long run, was planning to split the risk with the record companies, not the cost.
The problem is cash flow, as always the scourge of any small business. Apple's sound business model fatally assumed that all the parties could afford foregoing vast profits temporarily, in order to reap larger rewards later. it also failed to understand the totally different business model of small and independent music labels and artists, for which time is a major factor.

It's a shame that it took a mega-rich, self-obsessed pop singer to point out the obvious to them, though I am sure they were already considering the independent labels' arguments, put to them before whatever her name is blabbed on Twitter.

xxx
 
Seriously though- I don't understand the three month trial- you can test it out in a week- why the long free trial?
Competitors have and unlimited trail with the free tier that pays next to nothing. Apple also knows it takes 90 days to firm new habits.
 
I work in music, I also agree that Apple needs to pay artists something during this trial. They're too big not to, for smaller labels and indie artists it would be a tremendous burden to not bring in revenue for 3 months.

Still, there's no way to make everybody happy here. Streaming payouts are based on a revenue sharing model--not a predetermined royalty fee. So with no revenue coming in, and no way to know which free users will eventually pay up, the amount Apple pays will have to come out of thin air.

Artists would be very smart to take advantage of Connect during this time--push out links to merch, concert tickets and vinyl versions of their music to the hopefully increased number of people discovering music over the first 90 days.
Why are the artists only source of income with Apple? If I was an artist I'd want my music on Apple, Spotify, Satellite, radio, pandora, tidal. All of them. Why would I just limit myself to Apple? Also, I have no idea of how these agreements work, perhaps Id have to choose one or the other or just a couple, but still.
 
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Not the same thing. If apple were giving away physical goods, i.e. cds, records or tapes then your argument would hold some weight as the physical goods need to be manufactured. No one is working for free in the music streaming rights. The songs have already been made and no physical goods are being given away.
What's interesting in all this is record companies give away CDs all the time, they just charge it to the artist.
 
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Cough up, Apple.

Enough with the nickel and diming.

18 Million over 3 months is nickel and diming (based on Spotify cost) ? Even for Apple it's a lot and will affect the earnings report.

I'm curious how Apple is going to prevent people from signing up multiple accounts to continue the free trial each time the 3 month trial runs out.
 
What's really stupid about this is Apple said people would get 3 months free, and we all applauded. Apple acted like they were doing the consumers a favour, and yet expect the artists not to get paid an appropriate revenue amount - or expect them to do it for free? These are the artists who make Apple music; the whole concept of Apple music would not exist without musicians to put their music on. Furthermore, the artists/recording companies have to pay Apple for the courtesy of getting their music up on there.

Plus Apple aren't exactly short on cash.

How this doesn't leave a slightly sour taste in your mouth is incredible.
I wonder how many slamming Apple on this site ever downloaded a song, movie or software program that was not paid for. How about making a friend a copy of a cd or movie you had or getting one from someone else. Guess what, the artist were not paid and have no way of getting paid later.
 
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Oh great here comes Taylor Swift again this time complaining for not getting paid enough for her terrible music that many people enjoy for some reason.
 
This whole royalty during the trial period is ridiculous.

Is anyone else like me and personally not even care about the free trial? I'll gladly pay for the service from day 1. I'm going to be paying for it in the end anyway, so what difference does it really make. I'd rather have no free trial and have a full library of music to listen to rather than this pissing match between Apple, the labels, indie artists, and Ms. Swift.
 
It's Apple's decision to have a free trial, not the artist's, so why doesn't Apple deal with it? If Tesco gives you free Kit Kats as part of a promotion, then they don't automatically expect Kit Kat to give them for free to Tesco. If you get a free 1 month trial of Photoshop, that doesn't mean the developers don't get paid for a month, it means Adobe figures it out from their own stock of money.
As much as I agree with that I know when Tesco do a deal like that, they force mars to give them the goods for the sale as Tesco will argue that it will bring more sales in the future...
 
You find the back and forth so stupid, yet you took the time to read the article AND comment? Next time, do us all a favor. Read the headline and determine if the article annoys you or not. If it does, here's a crazy thought: DON'T READ IT! Then you add insult to injury by commenting on it too? You're just one of those people who like to complain about everything!

Yes, I find the back and forth stupid and wanted to say I do. So if I don't like something, I'm supposed to keep it to myself?
 
What's really stupid about this is Apple said people would get 3 months free, and we all applauded. Apple acted like they were doing the consumers a favour, and yet expect the artists not to get paid an appropriate revenue amount - or expect them to do it for free? These are the artists who make Apple music; the whole concept of Apple music would not exist without musicians to put their music on. Furthermore, the artists/recording companies have to pay Apple for the courtesy of getting their music up on there.

Plus Apple aren't exactly short on cash.

How this doesn't leave a slightly sour taste in your mouth is incredible.

And the customers MAKE Apple Music just as much because that's where the money comes from. Artists want the best of both worlds; more subscribers but want Apple to absorb all the cost.

Just because Apple has the money, doesn't mean they have to absorb all of it. That's dumb logic.
 
If they have permission to do so why can't they? The big labels don't seem to mind and it's not likely just because they have deeper pockets but rather because they see the long term benefit.

Because they don't have permission, at least not from all labels and artists which is why they are changing their position. The big labels are free to do what they wish but that doesn't somehow make their position the "right" one.

Apple is the one who wants to do a free trial so that they can get more business. If they want to provide free music streaming, they're the ones who need to offer the artists a deal they're happy with.
 
What's interesting in all this is record companies give away CDs all the time, they just charge it to the artist.

So in the free trial apple could charge the artists for every play?

Interesting con'cept right?

Apple is doing all the work after all.
 
And the customers MAKE Apple Music just as much because that's where the money comes from. Artists want the best of both worlds; more subscribers but want Apple to absorb all the cost.

Just because Apple has the money, doesn't mean they have to absorb all of it. That's dumb logic.

Well don't offer it as a free trial then.
 
Because they don't have permission, at least not from all labels and artists which is why they are changing their position. The big labels are free to do what they wish but that doesn't somehow make their position the "right" one.

Apple is the one who wants to do a free trial so that they can get more business. If they want to provide free music streaming, they're the ones who need to offer the artists a deal they're happy with.

The artists and/or labels that don't like it have an option to opt out so there is no loss to them. If the artists music is any good then it'll be listened to by more people and added to their playlists which after the trial period more get them more money that other competing services, the extra is to make up for the trial period.
 
I wonder how many slamming Apple on this site ever downloaded a song, movie or software program that was not paid for. How about making a friend a copy of a cd or movie you had or getting one from someone else. Guess what, the artist were not paid and have no way of getting paid later.

Nice strawman dude, be sure to put it up in the field to scare away the birds.

The point of streaming is:

1) easily avoids piracy because you can listen/watch something without having to shell out the entire amount for something you haven't seen/heard. Blind purchases are quite tough to justify for some people.

2) the artists get paid when you're streaming their content, so they're not losing money and your conscience is clean.

This 'free' trial was introduced by Apple so they look fantastic. But if you don't pay the royalties because it's a free trial, that's not fair.

If you're unwilling to pay the correct amount of royalties that you should, or will do, DON'T offer it as a damn free trial.
 
The problem Apple faces is that they will have a lot of people sign up to get the 3 months free but cancel after that. I'm going to give it a try but if it's not significantly better than Rhapsody which I have as part of my unlimited with T-Mobile I won't pay for their service after the trial is over. Apple is going to lose a ton of money here and they should. No thought was put into this promotion.
 
What's really stupid about this is Apple said people would get 3 months free, and we all applauded. Apple acted like they were doing the consumers a favour, and yet expect the artists not to get paid an appropriate revenue amount - or expect them to do it for free? These are the artists who make Apple music; the whole concept of Apple music would not exist without musicians to put their music on. Furthermore, the artists/recording companies have to pay Apple for the courtesy of getting their music up on there.

Plus Apple aren't exactly short on cash.

How this doesn't leave a slightly sour taste in your mouth is incredible.


The point is to pull users from Spotify. And yes the artists are the key and make Apple Music, but without iTunes showing up when it did, where would artists be right now? I hardly think Taylor Swift would be worth 200million+ if all of her music were sold through Spotify and physical copies alone. Let's be real, Apple should pay some now, and then move to their normal policies as planned after the 3 months.

PS- the worst argument in the world is "Apple should do x because they can afford it". One would assume they did not gain the wealth they currently have by spending it whenever possible.
 
The artists and/or labels that don't like it have an option to opt out so there is no loss to them.

...except Apple is a huge player in the music sales game, and gets massive publicity. Millions of people are going to sign up for the free trial and, for at least 3 months, they're not going to buy anything new while they can browse Apple Music for free. Its quite possible that this will cause a very noticeable dip in all music sales for a few months. Opting out of the trial won't protect you from a sales dip - and will reduce your chances of reaping benefits when the trial ends.

The problem won't be for the big boys/girls with healthy cashflow situations (I'm sure Ms Swift will be OK) but there could well be some small, independent publishers who can't cope with 3 months of famine.

When the trial period is over, either people will just go back to their usual buying habits or Apple Music may well turn into a lucrative new source of income - which will be no help if the bank forecloses on you 2 months into the trial.

Also, anybody with a new release/tour/promotion scheduled during the trial could be royally stuffed: the peak sales for your new masterpiece, when you're doing all your publicity and promotion and it is the latest shiny new thing, will be mopped up by people listening to it for free.
 
It's Apple's decision to have a free trial, not the artist's, so why doesn't Apple deal with it? If Tesco gives you free Kit Kats as part of a promotion, then they don't automatically expect Kit Kat to give them for free to Tesco. If you get a free 1 month trial of Photoshop, that doesn't mean the developers don't get paid for a month, it means Adobe figures it out from their own stock of money.

Actually, Tesco does expect suppliers to "participate" in promotions, by discounting or free stock, on the basis of better positioning and higher subsequent sales. I suspect that Apple's revised model, with lower payments during the trial period, is closer to the groceries model.
 
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