UK Indie Labels Say Apple Music Free Trial Could 'Literally Put People Out of Business'

[Zorn]

Fine, not everyone. But there will be an impact, and it is likely to be significant. For some, not all, it could be disastrous. It doesn't mean the end of indie music and indie labels, but it's still enough reason to be angry.

The music belongs to the artists that performed and wrote it, and to the labels that paid for it to be made (often one and the same). It isn't Apple's to give away for free, in the same way I'd never let anyone else use my licence code for Logic Studio.

A limited time free trial isn't the same as giving your product away for free. By your example, lots of expensive major software is provided with a free trial period. It doesn't destroy their business - on the contrary those that like the product pay for it, and those that don't go elsewhere.

Might there be an impact? It's possible, but I can't imagine it would be anything catastrophic like you are making out. What happens when any new streaming service launches and offers a free trial? Is it horrible and business-ending? You are basically assuming that in one concerted action, the iOS user base is going to update to iOS 8.4 (required for Apple Music) and immediately start the free trial, immediately stop everything else. There's just no way. What we will likely see is a staggered base of people upgrading and trying Apple Music. Many may not update their phones until the Fall and not start their trial till then.

 

[superleccy]

A limited time free trial isn't the same as giving your product away for free.

It's practically the same if your product has a shelf-life that is shorter than the free trail duration.

Might there be an impact? It's possible, but I can't imagine it would be anything catastrophic like you are making out.

Catastrophic for some, maybe even just a few. But that's catastrophic enough.

Might there be an impact? It's possible, but I can't imagine it would be anything catastrophic like you are making out. What happens when any new streaming service launches and offers a free trial? Is it horrible and business-ending? You are basically assuming that in one concerted action, the iOS user base is going to update to iOS 8.4 (required for Apple Music) and immediately start the free trial, immediately stop everything else. There's just no way. What we will likely see is a staggered base of people upgrading and trying Apple Music. Many may not update their phones until the Fall and not start their trial till then.

Apple Music isn't "any new streaming service". And iOS is the most upgraded device OS on the market.

 

[Jessica Lares]

Most of the guys who do listen to indie music are all cutting edge early adopters though. The general public isn't the main worry here.

 

[Zorn]

It's practically the same if your product has a shelf-life that is shorter than the free trail duration.



Catastrophic for some, maybe even a few. But that's catastrophic enough.



Apple Music isn't "any new streaming service". And iOS is the most upgraded device OS on the market.

The free trial only starts when the user asks for it though. Early adopters will upgrade to 8.4 on 6/30 and sign up. A great deal many more won't do it right away, or don't know about it yet. What happens when users start their free trial in September? Is the entire indie music release schedule through 2015 completely destroyed? Are those artists all of a sudden ruined? What about the people whose free trials have expired and now either have to pay, or purchase the songs for download? Again, it's all rampant speculation.

 

[peterh988]

Try recording some stuff that people actually want to listen to in significant numbers, instead of scratching around for a few pennies here and there for a few weeks. Then you can ride out the dry periods.

There's your problem.

 

[superleccy]

The free trial only starts when the user asks for it though. Early adopters will upgrade to 8.4 on 6/30 and sign up. A great deal many more won't do it right away, or don't know about it yet. What happens when users start their free trial in September? Is the entire indie music release schedule through 2015 completely destroyed? Are those artists all of a sudden ruined? What about the people whose free trials have expired and now either have to pay, or purchase the songs for download? Again, it's all rampant speculation.

I'd draw you a diagram if I didn't have better things to do.

Try recording some stuff that people actually want to listen to in significant numbers, instead of scratching around for a few pennies here and there for a few weeks. Then you can ride out the dry periods.

There's your problem.

Sorry I can't help you with your taste in music.

You both remind me why I gave up posting on this forum years ago. Bye.

 

[Tycho24]

Say you are an Indie label with a moderately successful underground band (or, a band running its own label, the line is blurred these days, but same difference) with a hotly anticipated new album scheduled for release this summer. You've worked your arse off on recording, post-production and promotion, and the band have made personal sacrifices whilst they spend time writing, rehearsing and recording too. Fortunately recording is cheaper than it used to be, thanks to the awesome Logic Studio X and everything else, but you still can't actually afford to pay the band anything, because you only broke even on the last album due to promotion costs, which are actually paid by all labels, even for artists that look like they've "come from nowhere entirely under their own steam".

You've promised the band that they'll get something back this time, apart from just screaming fans. The launch gigs are booked (which by the time you've paid venue, transport and accommodation fees you're already making an irreversible loss on), the bribes for favourable reviews have been paid (yes, that is really how it works... how else do you explain half the crap out there?) and the t-shirts are printed. You're running on impossibly tight margins, and you're relying on iTunes revenue to bring in a couple of grand so you can break even or maybe even better, because Spotify and YouTube pay near-as-damnit nada.

Then along comes Apple Music. If you sign-up, then all your fans listen to your highly anticipated album for free. Zero income. Legitimised piracy. By the end of the summer when revenue starts to trickle in, the fans have moved onto some other band (as they should) and maybe only listen to your album occasionally. Your only revenue opportunity is missed. You've helped promote the new music service of one of the most cash-rich corporations in the world, and got basically **** all back. The band, disheartened, give up and train as accountants. No Soft Bulletin, no OK Computer, no Parklife, no <insert your favourite indie band's career-defining third album here>.

If you don't sign up to Apple music, then people might at least still buy the vinyl or get the download from Amazon or iTunes. You'll loose out on people hearing your album on Apple Music, but you live to fight another day.

So, of course I'm not signing up my indie label to Apple music.

Some of you lot don't have a clue.

SL

Lol. You're the one without a clue!!!!!!!!!!!!!!!
T-Shirts are sold on tight margins at concerts???????? Hahahahahahahahahaha.
I doubt there's a single person on this message board stupid enough to believe your lies.
In actuality, indie artists make MUCH more profit touring & selling merch than selling a few albums. I've actually had indie artists directly tell me "I prefer you pirating my album & using your money to come see me live over you buying my album and NOT coming to see me".
And if you think radio hits are only hot for the 1st three months after they're released.... you know literally nothing about the music industry whatsoever. I doubt more than .001% of radio tunes were released less than 90 days ago. You're straight tripping.

 

[BJMRamage]

then don't sign up for Apple Music. Your artists won't get "exposure" on the service but you can still count on folks buying tracks/songs/albums. I won't be doing the free trial for Apple Music. I don't see the point of it. I don't see a need for Apple Music.

By keeping your label off Apple Music, then you can promote it coming onboard 2 months into the 3-month starting trial and you have one month of "free" music for many. If you as a label don't think the service terms are good, do not sign. then see what happens.

 

[superleccy]

Lol. You're the one without a clue!!!!!!!!!!!!!!!
T-Shirts are sold on tight margins at concerts???????? Hahahahahahahahahaha.
I doubt there's a single person on this message board stupid enough to believe your lies.
In actuality, indie artists make MUCH more profit touring & selling merch than selling a few albums. I've actually had indie artists directly tell me "I prefer you pirating my album & using your money to come see me live over you buying my album and NOT coming to see me".
And if you think radio hits are only hot for the 1st three months after they're released.... you know literally nothing about the music industry whatsoever. I doubt more than .001% of radio tunes were released less than 90 days ago. You're straight tripping.

I said the overall margin of gigging can be tight. T-shirts and merch are a money spinner, yes, but you're offsetting that against travel, accommodation, extra musicians, tour management & venue fees. The deal you strike with a venue is basically a gamble too. And not forgetting, if you're supporting a bigger act, then you typically having to pay for the privilege as well.

And, if you want to continue this debate, please can you at least make an attempt to be vaguely respectful, even if your experience and circumstances differ from mine.

 

[JamesMay82]

its technically more than 3 months. I imagine they might only be paid 30 Days EOM of 60 Days EOM so its really more like 4 or 5 months without pay. Also the music is their product/work no one would give some their work/product for free for that amount of time. Maybe a weeks free trial but not for months.

Also if they did sign up for it, the sales from Amazon and Spotify and anywhere else would likely drop off as well whilst people take advantage of the free trial.

 

[ArtOfWarfare]

What about all of the people who don't upgrade their iOS for 6 months or more?

This is a small number of people. Most people update to major new iOS versions within the first 2 weeks.

What about all of the users who have huge saved playlists on Spotify and see no need to switch services for the same price and redo all of the work?

Big playlists is one thing, but regarding the price, I think you missed the whole FREE FOR THREE MONTHS part. Passing on the trial is like seeing a $20 and a $10 lying on the sidewalk and not picking them up. I make above median pay in the US and I wouldn't pass on it, so I assume that more than half of people think the same way.

What about all of the people who have zero interest in streaming services because they don't want to rent their music for a subscription fee for all of eternity?

A small minority. I would guess most people are incapable of seeing a significance. Then most of those people who do see it realize that arguing in favor of owning CDs makes as much sense as arguing in favor of owning TV shows. Do you stream your shows, or do you own them all?

Sure, the Apple faithful might do this, and some super tech savvy early adopters will try it out. Some may cancel their Spotify Premium - some won't bother.

A coworker who is very anti-Apple, owning an Android device and Windows computer while making fun of iPhones and Macs says there isn't a chance that he's keeping his Spotify Premium account running for the 3 months after Apple Music is released. He'll be swapping to the Apple Music trial for 3 months, and if it's good, he'll stick with it, and if it's not, he'll go back to Spotify - same exact as me, who is very pro-Apple.

So it's not just the Apple faithful.

 

[akbarali.ch]

You seem to have missed the point or misread the article.

What if I told you I'll hire you for a job with a really great salary, but I can't pay you for the first three months. Would you do it? Could you afford it? Or would you literally be homeless if you took the offer?

The analogy is completely wrong. Its not like those publisher's only means of income is Apple streaming service which doesn't exit yet. They will continue their business as usual, sell physical CDs. sell online music, stream through various, already existing services. Apple's music service is just one more and will be a free trial for 3 months.

I mean, the entire software industry work and do business based on trial. Do they go out of business?

 

[Dimwhit]

It really doesn't seem like a big deal. Those labels will just wait about 6 months before hopping on. By then, the bulk of users interested in Apple Music will be paying.

No clue if they have a legit beef or not, but they're small labels, so I don't think it will have a huge impact one way or the other.

 

[LucasEVille]

Non issue for me, 6 months into the maturity of this service when they see the user numbers they will hop on knowing a lot will have passed the three month free trial by then.

 

[threesixty360]

I'm not sure I'm getting this right. Are the indie labels worried that they will lose their spotify revenue for 3 months whilst users try out this new service? Surely they don't have to provide their music for streaming in Apple Music so people would have to either buy indie music or stream it from another service (i.e. Spotify).

The 3 months is not really revenue free. Apple are paying a higher rate to record labels in the long run which will make up for the loss of earnings in the 3 months. Getting users on board as quickly as possible via things like this are the best way to get a healthy payment in the long run. I think the indies are being shortesighted.

 

[DanGoh]

Really interested to see how this all plays out. Can't wait to see the numbers at the end of the year. I think everyone is gonna end up winning.

Should Apple Music actually end up hurting the already ailing music industry, I'll just step it up and drop my mixtape .

 

[ohsnaphappy]

Please, if you love a band, buy their album, in addition to streaming it. And most importantly, buy merchandise and go to their concerts.

I buy the album, then stream from that point forward, since they get a few cents for each stream.

Start supporting the bands you LOVE!!!

 

[Nuvi]

This makes no sense whatsoever. Very small Indy labels make very little money from streaming services such as Spotify in the first place so three month free period on Apple Music is meaningless to them. I think their problem is with streaming services in general. They just want more money period. Small indy labels need to face the reality and adapt.

 

[WordsmithMR]

Well when hundreds of millions of consumers (Apple Music will not just be limited to iPhone users, this will also be for all iOS devices that are up to date, as well as iTunes users) switch over to subscribe to a free service for 3 months, then of course that will affect the sales of tons of music labels, both indie and major labels... People will not be purchasing individual songs or albums as frequently during this period.

However major labels have the capitol for this 3 month window to not be an issue, and can see the benefit and profit in the long run. Smaller companies do not always have the capitol, and have to the think about their financial stability in the short term because smaller labels can go out of business in as little as 3-6 months.

 

[Dimwhit]

Well when hundreds of millions of consumers (Apple Music will not just be limited to iPhone users, this will also be for all iOS devices that are up to date, as well as iTunes users) switch over to subscribe to a free service for 3 months, then of course that will affect the sales of tons of music labels, both indie and major labels... People will not be purchasing individual songs or albums as frequently during this period.

However major labels have the capitol for this 3 month window to not be an issue, and can see the benefit and profit in the long run. Smaller companies do not always have the capitol, and have to the think about their financial stability in the short term because smaller labels can go out of business in as little as 3-6 months.

The big problem is that I think most people who try Apple Music won't buy other music (at least as much) during that trial, even if that music isn't available on Apple Music. Those Indy labels are going to take a major hit either way. A lot of users will just not listen to their music for a few months while they kick the tires.

I could be wrong, but I know in my case, that's what I'd do.

 

[MyopicPaideia]

You seem to have missed the point or misread the article.

What if I told you I'll hire you for a job with a really great salary, but I can't pay you for the first three months. Would you do it? Could you afford it? Or would you literally be homeless if you took the offer?

Nope, it is like offering a new board position in addition to the already good job you have that pays you well, but you don't get paid any of that additional money for three months. You are still earning all the money you have been.

This is why ot appears to be a bit of a dramatic stretch - basically they're saying that all the other leading streaming and digital purchasing services in the whole world all cease to exist on June 30th being immediately replaced in their entirety by Apple Music. Really??

 

[MyopicPaideia]

Well when hundreds of millions of consumers (Apple Music will not just be limited to iPhone users, this will also be for all iOS devices that are up to date, as well as iTunes users) switch over to subscribe to a free service for 3 months, then of course that will affect the sales of tons of music labels, both indie and major labels... People will not be purchasing individual songs or albums as frequently during this period.

However major labels have the capital for this 3 month window to not be an issue, and can see the benefit and profit in the long run. Smaller companies do not always have the capital, and have to the think about their financial stability in the short term because smaller labels can go out of business in as little as 3-6 months.

If Apple Music becomes an instant hit at the scale you are talking about to where lost revenues would be that dramatic, that would be a pretty unprecedented. Spotify and all the rest should just cash in their chips now and quit while they can still get out with their skins intact.

 

[rmatthewware]

I've listened to authors like Cory Doctorow who claim giving away their works end up making them more money. It gives potential fans the chance to read their book, then decide if it's worth it to pay for it. He says the alternative is forcing someone to pay for a product they may hate, and may be more upset they had to pay for it. In his experience, he claims that the books he allows people to download for free, with the option to pay him later if they like it, has been more successful than the traditional sales method.

I think the same may be true for the music industry. If I have the chance to listen to your music and I like it, I'll happily pay for it. But if I have to pay for something without listening to it, I would be very unlikely to give that band the chance.

This is likely more true for indie labels and indie bands. While they have a smaller fan base, they're fans are often more loyal, and even rabid, than those of a larger, better known band. Indie bands have also learned, through necessity, the importance of connecting to their fans, engaging them online, and taking advantage of social media. You will often see performers and band members directly responding to fan comments. They're likely to listen to recommendations. For example, some indie bands have released vinyl versions of their albums because they noticed a fan demand for it. While there might not be a huge return on profit, they can quickly whip out a few dozen or even few hundred records for interested fans, and look good for doing it.

I often, however, see this fear of giving away a product for free. If they don't get on board, though, they'll miss out. The market is changing. They need to find a way to take advantage of it. If not, people won't be exposed to their product and they'll be left behind.

 

[Jessica Lares]

You don't buy music without knowing what you're getting beforehand though. You have outlets like YouTube, SoundCloud, and even those extended previews on iTunes.

 

[nyctravis]

Although I sympathize with the indies and listen to a lot of it, I see indies put their content on SoundCloud and other sites all the time with seemingly no revenue at all, so I'm not sure why they would balk at this.