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That doesn't make much sense.

Sure it does. Apple doesn't make it's money from servers, software development etc., so why should artists chip in to help pay for it? Artists do make money from royalties, so that's the reason for Apple paying. They're not asking Apple to chip in for their wardrobe or musical equipment.
 
Currently, option 3 looks like the best model. Even if it means Android users don't get the free trial (so Apple doesn't completely lose money because of them).

Are you kidding me? So Android users won't get what Apple users have? That seems a very bad way to market a cross-platform service.

No way in hell will Apple ever do that. Taylor Swift and her indie bunch can keep crying and complaining all they want.
 
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Apple apparently will pay higher rates for streamed music than competition services. I don't hear any artists complaining about that. I didn't hear Ms Swift say "Apple, I don't want to give you 3 months free so pay me but do it at the lower rate others pay me overtime my song gets streamed." In the end, it is in their long term financial interest for Apple to attract large user base and migrate users of other services so they can reach a broad audience and be paid more than from other streaming services.

I understand the want to make money off of what they wrote, I do the same thing with what I create. Sometimes, however, you have to give up some short term gains for larger long term gains.

Apple isn't forcing any of them to agree to this. They have to decide if it is in their best interests. If they think it isn't, they can pass on Apple's offer and higher payments after 3 months. Apple's isn't freeloading off of them or trying to force them to work for nothing; it's offering them a deal they think will enable them to build a viable business and make everyone more money in the long run.
 
Let's go to the math: suppose that Apple's free trial woos 25M (million) to take the trial and Apple wanted to make everyone happy by offering a free trial AND paying for the trial in the background (much like Netflix pays for the content to offer it at $8). 25M times $10/month = $250M/month. 3 month of free trials = $750M. Is that a lot of money? Is that a lot of money for Apple? How much did Apple pay for Beats? How much profit did Apple make just for the last quarter?

Let's make the free trial much more successful: 100M free trial users for 3 months. 100M times $10/month = $1B (Billion) per month times 3 months = $3B. How much did Apple pay for Beats? How much profit did Apple make just for the last quarter?

And that's not even the real math, as it's including the amount that Apple would be keeping for itself (apparently about 28% or so). Redone: 100M times about $7.20/month = $720M times 3 months = about $2.2B for 3 months. Is $2.2B a lot of money for Apple?

In short, for a relatively tiny portion of the Apple cash hoard (smaller than they paid for Beats), they could just pay the full price of the service for everyone interested in the trial, and it would be almost nothing to Apple. Content creators would get paid, Apple could write it off as a business expense, consumers could try it for 3 months for free.

Furthermore, Apple could get creative and inject some iAds to help pay for the trial and clearly convey that these ads run only for that purpose and would not be included after the free trial ends. This weekend, HBO & Cinemax are running one their free trial weekends. These (what are usually thought of as) commercial-free channels are basically running commercials pitching watchers to sign up for HBO & Cinemax before the free trial ends. Apple could follow that well-established, well-proven lead too to further reduce their own bill during this trial period. HBO & Cinemax are not getting to run movies for free during this period; they are just eating the bill of running the movies as a marketing expense to try to woo more subscribers. Apple could copy this and everyone would be happy.

Instead, Apple, no longer the small, fledgling company it once was... now billed as "the biggest company in the world" or "the most profitable company in the world" or "the most successful company in the world" needs those artists to donate their wares for 3 months so that Apple can try to make even more money. I wonder if, instead of Apple, this thread was about Google or Samsung or Microsoft, would our collective sentiment be so overwhelmingly in favor of those corporations vs. the artists who create the content. (rhetorical)

An excellent comment from you, as usual.

As you say, Apple can easily afford to pay the musicians as normal for this trial period, even if 100 million signed up. $2 billion or $3 billion is a drop in the ocean for Apple. Bear in mind that Apple made about $1.5 billion net profit a week in their Christmas quarter. So this might cost them two weeks profit if it's wildly popular!

My goodness, they're sitting on $200 billion cash doing nothing. And they have the nerve to make millions of musicians work for nothing for three months.

It's a crime that Apple are doing nothing with their money. They should either return it to shareholders or invest it fruitfully. Keep a cushion of $100 billion, sure, but put the rest to good use.
 
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Who foots the bill on Spotify's free trial, or Rdio's? I'm sure it was a bug in their software but on Rdio I listened to music for three months without any ads.
 
Honestly I don't think either is wrong.
Apple can run their business how they want, Artists/records/etc... are free to accept/deny the terms of that service. Apple is trying to have the 3 months free as a market differentiator to bring more people on board, which in the long run could mean more people listening to the music of the artists and hopefully be a bigger long-run pay off. but I certainly see why artists wouldn't like those terms, and Taylor has done just what I would hope those artists would do.
 
. A free trial doesn't mean no profits for content providers and I'm sure apple will be having a lawsuit very shortly about this from music industry peeps.

I doubt it since Apple would enter into contracts with artist before they stream their music so there would be no basis for a suit.
 
That is simply not true. They get paid now via services like Spotify. When people switch to Apple Music during the free trial period, then these payments will go away. So it is not going from "nothing to something" but from "something to less and back to something". Some artists can't afford that "less" period.

Amazing how few people understand that here. The math is so unbelievably basic.
I think you are wrong... because the math is even simpler.

He says money from Apple Music:$0
Since Apple Music is a brand name product, and hasn't existed yet for general consumption, he is precisely right no artist has received money from the product called Apple Music. There is the potential that after 3 months they will receive money, but they just haven't yet because Apple Music isn't a product.
 
That's not at all what happened. The labels signed contracts handing the music over. If it's a bad deal it's the LABELS' fault for signing the contracts.

They are the ones holding all the content. Whatever happens to it is 100% under their control.

Confused why everyone is missing this point? The labels must have signed the rights away to stream this music free for three months. Apple did not steal it. Shouldn't this letter be addressed to them?
 
Eddy Cue needs to go. He's accomplished nothing: Siri still sucks, constant outages to Apple network services and no innovation in his department. He likes to brag about owning a Ferrari and on stage he comes off as a complete tool compared to the other, pretty down-to-earth Apple executives.

He thought buying Beats and Jimmy Iovine is going to be some magical thing that saves his ass. I can't believe Cook fell for his BS. Cut the losses, integrate the headphone business and let Cue go along with Jimmy and Dre.
This! Worst apple exec right now.
 
Wrong.

That would be like you asking a lawyer, doctor, film-maker, architect, graphic designer, and so on to work for free for three months without payment. That is unethical. Period. I know for a fact because I work in the creative industry and we don't do art for free.

Ever heard of working on-spec? Here's a good example of this: http://www.nospec.com/why-spec-work-is-bad

What Apple is doing is cheap and wrong. If Apple wants to offer a free trial, they should still compensate the artists or music developers no matter what from the get-go.
Or alternatively it would be like asking my lawyer to work for free until the trial (pun not intended) is up, and he wins a higher pay out than if I would have hired him normally. (A bit like Apple Music I suppose) I believe it's called 'no win, no fee' and is very popular.

You work in the creative industry and you don't 'do' art for free? Not even for charities? While I support the idea of artists being paid for their work, your tone is very snobbish. We don't 'do' art for free. Listen to yourself haha.
 
Android users are not getting Apple Music at launch, it's not coming to Android (or Apple TV) until the Autumn.

The 3 month trial is not fixed in time, it's customer-dependent. If I sign up next year I'll still get the trial.
 
An excellent comment from you, as usual.

..............
My goodness, they're sitting on $200 billion cash doing nothing. And they have the nerve to make millions of musicians work for nothing for three months.

It's a crime that Apple are doing nothing with their money. They should either return it to shareholders or invest it fruitfully. Keep a cushion of $100 billion, sure, but put the rest to good use.

Who is making millions off free trial? who's paying Apple millions during a free trial? Jeez!
 
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I can't believe the cry babies these artist have turned into. OMG they work so hard, well so do millions of others who don't own million dollar houses. People can still buy her stupid music while the trial is going on its 3 months get over it. I can't believe how greedy musicians are these days. Look at the price of concert tickets, its ludicrous. I wish she would just take her greed and go away.

Got bad news for you. Apple is NOT in the business of making things for free for you. They're here to nickel and dime you. They don't care what music you listen to as long as they sucker you into a three month trial.

You don't get how the music industry works. People who work in the music industry deserve to be compensated no matter what.
 
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I don't see where the problem is. Apple is partnering with some artists or copyright holders to offer a product. If artists or copyright holders don't like the 3-months promotional period they may just not partner with Apple. Artists contribute with their content, Apple contribute with it's infrastructure, including salaries of all those that have been working and will work on this project. I bet Apple $$$ investment in this project his higher than the $$$ investment of all the other parties.
 
You are still not making a business argument. Apple built what it believes is an important music application on the most important device - the smartphone. Apple also feels that the best way to draw people in is my offering a lengthy trial period plus a generous family share plan. If Apple's plan is successful, everyone will benefit. over 70% of the $10 paid by millions of users will go to the industry. Why should Apple alone bear the cost of promoting it? If your answer is: because they have boat load of money, then you are not making a business argument.
If the Artists feel that apple is being unfair, then they have other alternatives to go to. IMO, 3 month free trial shouldn't be a deal breaker for anyone. The continued growth of the dominant streaming model (ad supported play of entire artist catalogs) spells doom for the music industry if it continues unchecked. Apple music may be able to check that trend.

Believe what you wish. Judge it as you wish. This is not the artists wanting a 3-month free trial, it is Apple. Why? Apple wants to woo paying subscribers anew and many from competing services like Spotify. Why? Mostly to benefit Apple. I'd like 28% of all that subscriber revenue for up to forever.

Look around. DirecTV and Dish offer new subscribers discounted trial periods. Are the artists who make the programming during those periods taking the hit so DirecTV or Dish can avoid the cost of that programming? No, DirecTV and Dish pay the price for the content and then "give it away" to woo more new subscribers to their services. That's the NORMAL way to do this.

What Apple is getting away with here is avoiding the cost by essentially pushing it onto the artists. They will simply not get paid from this service during the trial period. We can spin this as positive as possible- and we are- with stuff like "taking a hit now to make more money in the future" and so on, but they would have the same opportunity to make more money in the future if Apple simply paid the bill behind the scenes to do what Apple is wanting to do.

In Apple cable service "new model" threads one of the biggest arguments for a new TV service offering from Apple is so that we can bypass the greedy middlemen (the cable companies)... so that more of the money can go to the artists that actually make the content. Here Apple is the new middleman and this is a perfect opportunity for our spin to be realized by the "savior of the music industry" who "looks out for the artists". As illustrated in my earlier business math thread, it wouldn't even cost Apple much money at all to foot the entire bill if 100M of us sign up for the trial. Apple would write that expense off as a business marketing expense (just like every other business that buys stuff from creators and then gives it away for a while as a marketing promotion). And yet, we can't see that because it appears that Apple doesn't want to "look out for the artists" during this trial, so we spin all this rationale of why this is the ONE best way for Apple to go. Anyone countering that is WRONG
 
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The statement "sometimes you need to spend money to make money" seems rather applicable here... In spite of the debate over its validity.

Apple is clearly spending a lot of money, and giving away 3 months for "free." But nothing is free... So certainly some cost center in Apple is paying another for those 3 months. They're spending money to market it and update the OS to use it... They're spending money on legal fees to sign people up. The list goes on.

The goal is to in turn make money after those 3 months are up. So, maybe these starving artists need to understand this as well... They aren't giving their music away for free. Nobody will have permanent access to their music if they cancel after 3 months. But if they're so confident their music is so good, then maybe their inclusion would be a selling point for the service... And after 3 months they'll be paid accordingly...
Bandwidth...I can't even begin to imagine the bandwidth costs...
 
This silly comparison gets old. They are not working for free for three months. They are doing no additional work.

If you buy stock and the stock goes up in value, have you actually done additional work? No, but you get paid like you did.
 
Artists like Taylor Swift should suck it up. You're worth millions of dollars and a few months of reduced revenue won't hurt you.

Did you even read?

"says that while she is able to take care of herself and her band, crew and management with money from live shows, indie artists do not have the same luxury"
 
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So Apple is fronting the money for the infrastructure and the artists, as partners, are fronting what they have (content) so that in the end both can make more. It seems pretty reasonable to me.
Don't want to be a part of it, don't sign up.
 
So Apple is fronting the money for the infrastructure and the artists, as partners, are fronting what they have (content) so that in the end both can make more. It seems pretty reasonable to me.
Don't want to be a part of it, don't sign up.

Apple has mounds of cash. They can afford it.
 
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