Ignoring the little guy for a moment (though we shouldn't) imagine the impact on a known, big, popular artist who is releasing a new album on July 1 and the impact on sales if everyone for the 1st three months of availability could listen to it for free; do you really believe that wouldn't impact sales?
Imagine if everyone could watch Jurassic World free for the first three months after release for nothing, do you really think that would be good for cinemas or the studios?
Certainly, if everyone in the world could watch a first-run major motion picture for free for the first three months after release, with no back-end subscription commitment, no offsetting revenue (ads, popcorn, etc.)... yeah, it doesn't seem like a smart move. The economics of that part of the movie business is dependent on advanced publicity and holding the movie for ransom - lavish production and marketing budgets that are set on the assumption of high revenues in the first months. That's why we won't see Jurassic World on pay-per-view, HBO, Netflix, or iTunes Store for several months at a minimum.
But if instead of seeing it totally free, the theater-goers had to subscribe to a $9.95/month service as a condition of seeing the movie, and the subscription service gave greater visibility (and play) to all the older films in the studio catalog... based on the normal dynamics of "free trial" subscriptions (a fair proportion continue as paid subscribers
and under-utilize their subscription), there would likely be more than enough revenue on the back end, coming from views of the entire catalog, to offset the loss-leadering of one title at the front end.
Regardless, the music business doesn't work like big-budget Hollywood. New music goes to wide distribution almost immediately, it goes out free on the radio immediately. There are a few acts that are able to ship double-platinum, for but for the vast majority of releases, the first three months are a buzz-building period - the greater exposure they receive, the better their long-term prospects will be. A judicious amount of "free" greases the wheels.
We don't know yet if Apple Music will succeed; all that loss-leadening may still result in a bust. But... At the time iTunes Store came along, nobody in the music business was making money on music downloads - it was all free file sharing, and CD sales were plummeting. Apple came along with a successful method for getting people to pay for their downloads and, arguably, saved the music business. The longterm goal here is not to replace the money Apple's lost to Spotify, it's to get the public to spend more on music than they already do. Subscriptions, on the whole, seem like a great way to do that.