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To everyone saying that is cheap....

So in Spotify's first year, they had 13 billion downloads. Divide that by the free period of 3 months...(13 bil/4) and you get 3,250,000,000 streams...multiply by 0.02 and that is $65 million worth of free music. One could argue that Apple will crush this given everyone who has an iPhone will catch on. Mind you these are year ONE numbers for Spotify. By the end of the year, there will be around 300 million active iPhones. Let's say 1/6th of those use Apple Music. 50 million users. 65 streams a person is all that would take.

There is an error with your math though. They are paying .2 of $0.01. So you'd have to multiply 3,250,000,000 by .002 = $6.5 million.
 
How much do you pay for this? That seems incredibly low for a smartphone using a 4G network.

You pay 29.95€ in Germany on T-Mobile for 500MB data and telephone/SMS flat. 39.95€ for 1.5GB data. There is a cheaper option with the same good D1 network, Congstar, but Congstar is limited to 7,2 MBit/s speed. (You probably won't notice the difference with normal surfing, I know - still I think the prices in Germany for data are terrible compared to most of the rest of the world.)
 
So if I stream just 4,045 songs per month Apple will lose money. That's a goal to shoot for!
 
My wife and I are on a plan with AT&T for unlimited texts, unlimited talk (I think), and only 3GB of shared data between the 2 of us. My bill is $160 a month. $15 for every GB over 3GB.

Edit to add: last month was the first month we ever went over our data. Coincidentally, it was also the month I signed up for Spotify.

Damn, that is expansive and so little data. I hope the situation improves in the future. Thanks for sharing
 
We have a "guest" network at my work that we are free to use. Maybe it's a "creative" field thing.
I work for one of the top 20 tech companies, and we have a guest network like that also. I think it's fairly standard to let employees use the company Internet connection nowadays. It's not a "free" service for the company, as they pay for the bandwidth, but it's a fairly easy service for them to provide.
 



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.

applemusic-800x496.jpg

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
I'm confused. Are they paying two-tenths of one penny or two cents?
 
So if I stream just 4,045 songs per month Apple will lose money. That's a goal to shoot for!
You know, if you want Apple to lose money, there are easier ways than subscribing for one of their services and trying to exploit it until Apple has lost a couple of Dollars. Aside from the fact that you could already be over-using "free" services like iCloud, iMessage or Facetime, you could buy Apple products and return them again or you could keep calling their support hotline with stupid questions. There are really a lot of ways to be petty. It's pretty easy.
 
Only yesterday I commented on another site about how Apple should be forced to reveal how much they are paying artists during the trial period - they must be listening!

Only yesterday, too, I was reading about artists getting supporters to loop 30 second soundbites of their songs on Spotify to earn money for them, and that they were receiving 0.5 cents / 30 seconds airtime. So, for an average of 3 minute song, they would earn - at that rate - 3 cents per song.

Isn't 0.2 cents absolutely MEAN? Billions in the bank, billions due to come in from the project, and that's all you get?
 
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Damn, that is expansive and so little data. I hope the situation improves in the future. Thanks for sharing

My bill last month was $276 because I activated 2 iPhone 6's that I paid FULL retail price for and paid for with AT&T. Thanks for spending $1200 in our store, now we're going to charge you another $100 to "activate" those.
 
Only spotify free and that's not limited to 3 month.
Also, I think both don't pay enough.

The whole mess is turning out to be a great thing for artists and labels since there is now a precedence- anyone that starts a new streaming service will now have to pay for free streams from day one.

"A key point of improvement is that we will now receive a per stream payment from day 1 of any free trial period."

http://thequietus.com/articles/18194-apple-u-turn-not-down-to-swift
 
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Isn't 0.2 cents absolutely MEAN? Billions in the bank, billions due to come in from the project, and that's all you get?
Well, if you feel streaming isn't paying the artists enough, then you are free to buy the music. The artists earn more from that.

Or you can join a more expensive streaming service that pays out more to the artists. But as you can see from various comments in recent threads, many people think that $9.99 is already too much, which is why such streaming services don't exist yet. In fact, many people even join ad-supported services, because they don't want to pay a single Cent for music.

Yes, Apple might earn a lot (it remains to be seen), and the labels might earn as well. But ultimately, it's the users who have it in their hands whether the artists are paid fairly or not. Artists earned quite a bit better in pre-Internet times. Now a lot of people don't want them to have any money whatsoever. Isn't that absolutely mean?
 
So if I stream just 4,045 songs per month Apple will lose money. That's a goal to shoot for!


So is apple music on macs too? Could spotify write a script to stream billions of songs every day to try and crush apple. Altho app,e has way too much cash even if they did.
 
If you listen to fewer than 20 songs an hour and less than 8 hours a day, the numbers begin to look very different. If the average subscriber listened to the service for 4 hours a day, then the per-play revenues would be $4.80 while subscription revenues would still be $7.14.

A lot of this hinges on the behavior of subscribers, behavior that seems to hold true whether we're talking about health club memberships, the old Book of the Month Club, the premium channels bundled into a cable TV subscription, "unlimited calling and texts" on a cellular service plan, magazines and newspapers... While there will be those who make maximum use of those subscriptions, there's generally a much larger population that, after an initial honeymoon period, substantially under-utilizes their subscriptions yet lets them continue, month after month, year after year.
That was kind of my point-- I don't know how link is evidence that payments are less during the 90 day window than once people start paying. It's seems like they payments are structured too differently to even tell. I'm guessing Apple went with this model so they don't have to pay a month's royalties for someone who signs on and tries 3 songs.
 
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