Apple Paying 0.2 Cents for Each Song Streamed Free During Apple Music Trial Period

[MacRumors]

Apple will pay record labels 0.2 cents for each song that customers stream for free during the three-month Apple Music free trial, reports The New York Times. The rate is similar to what Spotify pays out for songs accessed through its free streaming tier and does not include a smaller payment made to music publishers for songwriting rights.

Apple is still working to complete deals with publishers, but a second report from Billboard suggests the company may pay out an additional 0.047 cents per stream for song rights, for a total payment of approximately 0.247 cents for each song an Apple Music user listens to.

Though Apple did not initially plan to pay labels and publishers during the three month free trial it's providing to customers, it reversed course after both a strongly worded letter from Taylor Swift and negotiation difficulties with independent labels who balked at the terms.

The money that Apple is paying per stream during the trial period is significantly less than what rights holders will receive after Apple Music has paying customers, but it appears to have satisfied many indie labels. As of this morning, Apple signed deals with both Beggars Group and Merlin Network, companies that represent more than 20,000 indie labels and distributors.

Apple Music will officially launch next Tuesday in over 100 countries. All customers will receive a free three month trial, after which time a subscription will be required to access the service. Subscription prices vary by country, but in the U.S., an Apple Music subscription costs $9.99 per month for an individual or $14.99 per month for a family of up to 6 users.

Article Link: Apple Paying 0.2 Cents for Each Song Streamed Free During Apple Music Trial Period

 

[Jmausmuc]

How generous...
1 $ per 404 streams.

Edit: many people are saying paying this little is enough, because it adds up with millions of users.
Are you guys serious? Those are all users who may have otherwise payed 99ct per song.

 

[pragmatous]

Does Apple understand yet that we have data caps of 2GB for most people and that streaming isn't really an option?

 

[pubb]

2GB? I share 2GB with my SO on our shared plan.

 

[east85]

Does Apple understand yet that we have data caps of 2GB for most people and that streaming isn't really an option?

Apple may understand that WiFi exists.

 

[AngerDanger]

How generous...
1 $ per 404 streams.

Apple has a few million pontential users who will be prompted to try this upon opening their music apps. This is quite fair.

Does Apple understand yet that we have data caps of 2GB for most people and that streaming isn't really an option?

This hasn't stopped Spotify or Pandora. For those whom this isn't an option, they simply won't use it.

 

[pragmatous]

Wifi exists in your work place for your personal use? probably not.

Apple may understand that WiFi exists.

 

[ghsDUDE]

But does Taylor Swift approve?

 

[xero9]

Does Apple understand yet that we have data caps of 2GB for most people and that streaming isn't really an option?

Not everyone has a 2GB cap. Plus there is this magical technology called WiFi. Some of us have it!

Also, Apple Music works on the computer as well.

If you have a crappy data cap and it doesn't work out for you, then simply don't use it. By your logic, Netflix should close up shop too, seeing as some people have crappy data caps!

 

[nouveau-apple]

Exactly. It will only benefit T-Mobile customers. But I'm already invested in Google Music.

 

[rols]

Does Apple understand yet that we have data caps of 2GB for most people and that streaming isn't really an option?

well they didn't realise that musicians wouldn't stand not being paid for 3 months so perhaps they missed that point too.

I'm sure there's 24x7 free WiFi at the Apple campus so perhaps it just never came up.

 

[east85]

Wifi exists in your work place for your personal use? probably not.

As I work from home it does. But on the topic of data caps I wish more of the major carriers would do what T-Mobile has done with streaming and not count it against data allotments.

 

[JAT]

Apple may understand that WiFi exists.

Not according to the iPhone 6 I have.

 

[pragmatous]

Again there's no wifi at work for me to use. I wouldn't watch netflix at work but I would listen to music at work.

Are you having a hard time understanding the difference? I don't have a choice in data caps that's what the carrier provides. There is no unlimited with my carrier.

But does Taylor Swift approve?

Not everyone has a 2GB cap. Plus there is this magical technology called WiFi. Some of us have it!

Also, Apple Music works on the computer as well.

If you have a crappy data cap and it doesn't work out for you, then simply don't use it. By your logic, Netflix should close up shop too, seeing as some people have crappy data caps!

 

[ck2875]

I've been using iTunes since autumn 2003 when I got a PowerMac G5, and looking at the song with the highest play count in my library, I've played that song 669 times. This would mean that if I had been using Apple Music this entire time, the record label/band (Coldplay) [Yeah, go ahead and judge] would have received $1.34 from my enjoyment of this song (using the .2 cents listed in the article) which is about on par with me just buying it outright from the iTunes store (which I did). For most music I buy, I don't listen to the song nearly this many times, so I can definitely see why some artists aren't big fans of the whole streaming concept.

Edit: As pointed out later in the thread, I guess I was calculating this using the free period rate. So I guess you can ignore what I said and I'll go back to lurking.

 

[Michael Scrip]

I heard Apple Music has an offline mode where you can download songs onto your phone for when you're in an airplane or subway.

So does Apple count how many times you listen to those songs? You wouldn't be "streaming" them from a server to your phone.

 

[ElRojito]

You showed them, Ms. Swift!

 

[ElRojito]

If I were to guess, it just uploads the data once you hit the net again.

 

[Aiwaz418]

How generous...
1 $ per 404 streams.

That's actually slightly more than I make from my material on Spotify.

 

[OTACORB]

Does Apple understand yet that we have data caps of 2GB for most people and that streaming isn't really an option?

This is why you will be able to download playlist that you create or that others create that you subscribe to. If you do this via wifi then there is ZERO impact to your data cap on your phone. Now if you decide to stream radio stations that is on you and would impact your data cap. However, this service clearly won't work for everyone because of that. However Apple music works no different than Spotify, Pandora, Rhapsody in that the radio portion must be streamed. So, do you understand that?

 

[Aiwaz418]

Wifi exists in your work place for your personal use? probably not.

Yes, in fact, they do.

 

[pragmatous]

I was not aware of the download offline feature of apple music. Thanks!

This is why you will be able to download playlist that you create or that others create that you subscribe to. If you do this via wifi then there is ZERO impact to your data cap on your phone. Now if you decide to stream radio stations that is on you and would impact your data cap. However, this service clearly won't work for everyone because of that. However Apple music works no different that Spotify, Pandora, Rhapsody in that the radio portion must be streamed. So, do you understand that?

 

[ck2875]

Does Apple understand yet that we have data caps of 2GB for most people and that streaming isn't really an option?

This is why you will be able to download playlist that you create or that others create that you subscribe too. If you do this via wifi then there is ZERO impact to your data cap on your phone. Now if you decide to stream radio stations that is on you and would impact your data cap. However, this service clearly won't work for everyone because of that. However Apple music works no different that Spotify, Pandora, Rhapsody in that the radio portion must be streamed. So, do you understand that?

I wonder if T-Mobile will include this in their "Music Freedom" feature, where music streaming doesn't count against data limits. They already include iTunes Radio in it, along with Spotify, so it would make sense if Apple Music were included.

I'm not on T-Mobile, but it's such a great selling point for using them as a provider. ...granted, no service in my area is not a good selling point.

 

[bigchrisfgb]

Does Apple understand yet that we have data caps of 2GB for most people and that streaming isn't really an option?

If streaming isn't an option then why is it becoming more popular?
Not everyone is limited by data caps.

 

[KALLT]

Apple has a few million pontential users who will be prompted to try this upon opening their music apps. This is quite generous.

Generous in relation to what? In the worst case, people will put their subscriptions with other providers on hold to listen to Apple Music during the trial and people who currently don't stream may not continue doing it afterwards. The onus is still with Apple to demonstrate that this temporary loss of revenue will actually lead to net profit increase after the first trial period ends. Spotify and others still have the advantage of network effects.