With exactly two weeks until the launch of Apple Music, details about the revenue sharing model for the streaming music service continue to emerge. Billboard reports that Apple has yet to contact independent music publishers about Apple Music, leading many indie labels to believe that the Cupertino-based company will soon send a bulk email to publishers with an opt-in contract attached.
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Apple will reportedly offer indie music publishers a headline rate of 13.5% revenue, higher than the 12% it pays for iTunes Match and 10% it pays for iTunes Radio. Apple will pay indie labels slightly higher rates than the industry standard, contributing to Apple Music's overall 71.5% revenue sharing, in return for making no royalty payments during the three-month free trial it will offer consumers.
"That free trial, with no payments being made to rights holders, precluded Apple from taking advantage of the statutory licenses that most interactive streaming services use. Under that statutory license, Apple must send notices of intent (NOIs) to publishers with a list of the songs they plan to use, and then make payment to publishers using a three-tier formula approved by the Copyright Royalty Board."
The 13.5% headline rate is reportedly part of a larger payment formula that will be used to determine royalties paid to rights holders.
Apple Music was announced 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
So if the OP's song came up in the free trial or I happened to hear about it somewhere, and I check it out during the trial and really like it, I might listen to it a dozen times or so. Total amount paid out for all those listens during the trial? Zilch.
And then maybe I'd listen to it maybe a couple times a year after that, if it's lucky enough to come up in the shuffle? I'm sure there are Beatles songs that I haven't listened to in years just because they haven't come up in the shuffle. Not because I don't like those songs, or don't think they're worth paying for, but just because they don't come up.
When you're being paid based on the number of listens, that's potentially a lot of lost revenue during the free trial period.
The one feature of Match that isn't included in Apple Music seems to be the ability to upgrade music sourced elsewhere to high quality copies from iTunes. I've already done that, so no need to continue Match membership as far as I see.