Apple Confirms 71.5% Revenue Sharing for Apple Music, No Royalties During Trial Period

Apple Music iOS 9 IconApple vice president of iTunes content Robert Kondrk has confirmed to Re/code that the Cupertino-based company will share 71.5% of Apple Music revenue with music owners in the United States.

That number will be slightly higher outside of the United States, averaging around 73%, but Apple will pay no royalties during the three-month free trial period in return for paying a few percentage points extra.

"Apple won’t pay music owners anything for the songs that are streamed during Apple Music’s three-month trial period, a bone of contention with music labels during negotiations for the new service. But Kondrk says Apple’s payouts are a few percentage points higher than the industry standard, in part to account for the lengthy trial period; most paid subscription services offer a free one-month trial."

The payments will be primarily sent to record labels and publishers that own the rights to songs and their underlying compositions, meaning that the royalties will not necessarily line the pockets of musicians directly. Artists often have their own individual deals with the record label they are signed to, so their payouts are often dependant on the terms of their contracts.

Apple paying seven-tenths of every dollar to rights holders is the standard rate paid by other streaming music services such as market leader Spotify, although Apple Music may be more lucrative for record labels due to its absence of a free ad-supported tier. Spotify argues that Apple also offers free streaming music through iTunes Radio and its upcoming Beats 1 global radio station.

Apple Music was unveiled last week as an all-in-one streaming music service, live global radio station and social platform for artists to connect with fans. The subscription-based service will be available June 30 for $9.99 per month after a three-month free trial period for iPhone, iPad, iPod touch, Mac and PC. Apple TV and Android versions of the service will be available in the fall.

Top Rated Comments

hlfway2anywhere Avatar
80 months ago
I'm sure a lot of people will have opinions about the unpaid trial, but as a musician myself, I'd rather give Apple Music users 3 free months of my music with higher payouts indefinitely after the trial than have my music on other streaming services with lower payouts all around. its my understanding that as an artist or label, if you don't like it, you're free to distribute your music elsewhere.

"No royalties during trial period" - what a shabby business model where artists are pre-financing Apple's market entry. :mad:

I know this is probably industry standard, and due to negotiations with the labels, but for me, that means I will not buy Apple Music. I simply do not want to support such a business model.
Please don't buy Apple Music. Buy all of the music you listen to and do not 'pirate' music and you will be doing a huge favor to the artists you support.
Score: 14 Votes (Like | Disagree)
ugahairydawgs Avatar
80 months ago
"No royalties during trial period" - what a shabby business model where artists are pre-financing Apple's market entry. :mad:

I know this is probably industry standard, and due to negotiations with the labels, but for me, that means I will not buy Apple Music. I simply do not want to support such a business model.
If there's no revenue coming there are no funds to pay out to the artist. It would be different if Apple was running ads during this the trial periods, but they aren't.
Score: 11 Votes (Like | Disagree)
crenz Avatar
80 months ago
"No royalties during trial period" - what a shabby business model where artists are pre-financing Apple's market entry. :mad:

I know this is probably industry standard, and due to negotiations with the labels, but for me, that means I will not buy Apple Music. I simply do not want to support such a business model.
Score: 9 Votes (Like | Disagree)
BillyBobBongo Avatar
80 months ago
The payments will be primarily sent to record labels and publishers that own the rights to songs and their underlying compositions, meaning that the royalties will not necessarily line the pockets of musicians directly.
Please don't buy Apple Music. Buy all of the music you listen to and do not 'pirate' music and you will be doing a huge favor to the artists you support.
Go to gigs, that's how you can support artists.
Score: 7 Votes (Like | Disagree)
citysnaps Avatar
80 months ago
"No royalties during trial period" - what a shabby business model where artists are pre-financing Apple's market entry. :mad:

I know this is probably industry standard, and due to negotiations with the labels, but for me, that means I will not buy Apple Music. I simply do not want to support such a business model.
Then do your duty and make a personal choice to not use the trial period and simply sign up with a subscription on day one.
Score: 7 Votes (Like | Disagree)
Thunderhawks Avatar
80 months ago
"No royalties during trial period" - what a shabby business model where artists are pre-financing Apple's market entry. :mad:

I know this is probably industry standard, and due to negotiations with the labels, but for me, that means I will not buy Apple Music. I simply do not want to support such a business model.
And other companies' one month trial does the same, but Apple pays a higher percentage to make up for that.
You viewpoint is shortsighted.
If the free 3 months trial generates a lot of extra subscribers , then the payout is obviously greater and in the end the artists get more money (depending on their deals)
Score: 6 Votes (Like | Disagree)

Top Stories

nothing ear 1 buds 1

Nothing 'Ear (1)' True Wireless Earbuds Launch to Take on AirPods Pro With ANC and Unusual Design for $99

Tuesday July 27, 2021 7:57 am PDT by
Nothing, a new brand from OnePlus founder Carl Pei, has today officially launched the "Ear (1)" true wireless earbuds after months of anticipation around the company's AirPods Pro rival. The Ear (1) features an in-ear design, Active Noise Cancelation, Bluetooth 5.2, IPX4 water resistance, and a charging case with Qi-compatible wireless charging and a USB-C port. Fast pairing is supported on...
iPhone 13 Always On Feature

iPhone 13 to Bring Over a Major Feature From the Apple Watch

Wednesday July 28, 2021 2:21 am PDT by
Apple's upcoming iPhone 13 lineup will feature an always-on display akin to the Apple Watch Series 5 and Series 6, according to recent reports. In his weekly Power On newsletter, Bloomberg journalist Mark Gurman, who often reveals accurate insights into Apple's plans, said that the iPhone 13 may feature an Apple Watch-inspired always-on mode. The Apple Watch Series 5 and Apple Watch...
duracell battery bitter coating

Apple Says Don't Buy AirTag Replacement Batteries With Bitter Coating

Wednesday July 28, 2021 11:08 am PDT by
Since AirTags were just released earlier this year and are expected to have a year-long battery life, it may be some time yet before AirTag users need a replacement battery, but when the time comes for a refresh, Apple is warning customers not to buy batteries with a bitter coating. AirTags use coin-shaped CR2032 batteries, which happen to be a size that's easy to swallow. Some battery...
iPad mini pro feature 2

iPad Mini 6 to Feature 8.3-Inch Display With No Home Button and Narrower Bezels

Monday July 26, 2021 12:26 pm PDT by
The sixth-generation iPad mini that's in the works will have an 8.3-inch display, according to display analyst Ross Young. That will be larger than the current 7.9-inch display, with the larger size due to the removal of the Home button and a narrower bezel design. Rumors about the iPad mini 6 have been picking up in recent weeks ahead of its prospective launch this fall. Apple analyst...
iOS 15 General Feature Purple

Everything New in iOS 15 Beta 4: Safari Tweaks, MagSafe Battery Pack Support, Notification Updates and More

Tuesday July 27, 2021 11:47 am PDT by
Apple today released the fourth betas of iOS 15 and iPadOS 15, introducing additional refinements to the new features that are coming in the software updates. In these betas, Apple has introduced changes for Safari, Notifications, Focus mode, and more. Safari Updates Apple is continuing to refine the design of Safari on the iPhone, and in iOS 15, there are tweaks to improve usability. ...
new m1 chip

Tim Cook on Apple Deciding to Manufacture Components: 'We Ask Ourselves If We Can Do Something Better'

Tuesday July 27, 2021 3:04 pm PDT by
During today's earnings call for the third fiscal quarter of 2021 (second calendar quarter), Apple CEO Tim Cook was asked how Apple decides what components to purchase and what components to develop, and Cook said that Apple asks if it can be done better. We ask ourselves if we can do something better. If we can deliver a better product. If we can buy something in the market and it's great...
iPad Pro Feature Magenta

Mac Otakara: iPad Air 5 to Feature iPad Pro-Like Design, No Design Changes Coming to iPad Mini 6 or iPad 9

Tuesday July 27, 2021 11:06 am PDT by
The next-generation iPad Air will feature a design that's similar to the third-generation iPad Pro, according to Japanese site Mac Otakara. Citing a Chinese supplier, the site says that the fifth-generation iPad Air will continue to feature a 10.9-inch display and a Touch ID button on the side, but it will gain a dual-lens camera system with Wide and Ultra Wide cameras. A LiDAR Scanner is ...
Apple Leak Feature

Apple Demands Leaker Reveals Sources Under Threat of Being Reported to Police

Wednesday July 28, 2021 6:53 am PDT by
Apple has sent a cease and desist letter to a leaker based in China as part of its continuing attempts to curtail leaks of unreleased products, according to Vice. A Chinese citizen who shared images of stolen Apple prototypes on social media was sent a warning letter from Fangda Partners, Apple's law firm in China, on June 18, 2021. An extract from the letter read:You have disclosed without ...
iOS 14 on iPhone feature emergency

Apple Releases iOS and iPadOS 14.7.1 With Fix for Touch ID Apple Watch Bug

Monday July 26, 2021 9:48 am PDT by
Apple today released iOS and iPadOS 14.7.1, minor bug fix updates that come just a week after the release of iOS 14.7, software that introduced new Apple Card features and support for the MagSafe Battery Pack. The iOS and iPadOS 14.7.1 updates can be downloaded for free and the software is available on all eligible devices over-the-air in the Settings app. To access the new software, go to...
General iOS 14

iOS 14.7.1 and macOS Big Sur 11.5.1 Patch Security Vulnerability That May Have Been Actively Exploited

Monday July 26, 2021 11:55 am PDT by
Apple today released unexpected iOS 14.7.1 and iPadOS 14.7.1 updates to the public, and according to a newly released support document, the software addresses a serious security vulnerability that may have been exploited in the wild. Apple says that an application may have been able to execute arbitrary code with kernel privileges due to a memory corruption issue. "Apple is aware of a report ...