Apple's newly announced music streaming service, Apple Music, is upsetting a handful of independent United Kingdom-based music labels who house artists such as Adele and Arctic Monkeys (via The Telegraph). Under the terms being proposed by Apple, labels will receive no compensation during the three-month free trial given to Apple Music users. The labels argue that this trial period will "literally put people out of business," and refuse to support the service, which launches in under two weeks on June 30.

applemusic
According to Andy Heath, the chairman of industry lobby group UK Music, no British independent labels have agreed to Apple's terms or plan to in the future. Most of the labels claim Apple hasn't thoroughly prepared the labels for the launch, and that the time between its announcement and launch has left little time for contract negotiations.

“If you are running a small label on tight margins you literally can’t afford to do this free trial business," Heath stated. "Their plan is clearly to move people over from downloads, which is fine, but it will mean us losing those revenues for three months.

Apple hasn’t thought this through at all and it’s not like them. They can’t spring a contract like this on us three weeks from release."

Apple has attempted to reassure skeptical labels that once the three-month free trial ends, Apple Music will support a 71.5 percent revenue sharing contribution to labels backing the streaming service. The number will even be slightly higher -- about 73 percent -- outside of the United States to counterbalance the no royalty payment policy during the trial period. It's still not enough for some labels, according to Heath.

“I think the dynamic here is nothing to do with the royalty rates but there are elements of these deals that are just too difficult for smaller labels to do. It will literally put people out of business.

Smaller labels would be completely screwed. Apple just has to move on this.”

Apple Music was officially unveiled last week during WWDC as a three-tiered service with basic music streaming, a live global radio station, and a social media platform that allows fans to follow favorite artists. The long-awaited service will officially launch on June 30 with a three-month trial period that will allow everyone to try it out for the summer. Afterwards, Apple Music will cost $9.99 per month for users who want to stick around.

Top Rated Comments

supersalo Avatar
130 months ago
I don't understand how the labels are "losing revenue" during the 3 months? Are they claiming that downloads will cease entirely during those 3 months? If so, that's a bit of a stretch. It's akin to the movie industry claiming that each pirated movie equates to one lost sale (when they know full well that someone pirating a movie doesn't mean they had any intention of buying it).
Score: 17 Votes (Like | Disagree)
Cassady Avatar
130 months ago
I must be slow. How is "not receiving royalties" for three months, for something that didn't exist before, going to cripple Indie record labels? It's not like royalties that they are currently receiving, are going to be taken away somehow? Apple Music is surely an add-on to already existing streams? Can someone explain?
Score: 11 Votes (Like | Disagree)
Corrode Avatar
130 months ago
I'm surprised by the lack of sympathy for indie labels but maybe I shouldn't be. Personally, I don't think music streaming is sustainable and I don't think people will notice until years down the road when we finally notice that there's just not as much music being produced as there used to be.
Score: 7 Votes (Like | Disagree)
CouponPages Avatar
130 months ago
Pointless. Simply pointless. For decades artists not only didn't get paid when their songs played on traditional airwaves, but they often bribed the station managers into playing their music.

So we've gone from a point where independent artist are willing to pay to have their music heard, to a point where they feel robbed when somebody plays their song.

I have a massive music library. I've never stolen a song. A lot of the songs I've bought since streaming came along are a direct result of hearing new music for the first time on the free versions of Pandora, iTunes Radio or iHeartRadio.

When an independent artist needs to be paid to be heard for the first time, they simply won't be heard.
Score: 7 Votes (Like | Disagree)
superleccy Avatar
130 months ago
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
Score: 7 Votes (Like | Disagree)
Corrode Avatar
130 months ago
So? Just get on board once the free trial is over then. What do they want? Apple to just give them money? Will music magically be outlawed in 90 days?
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?
Score: 6 Votes (Like | Disagree)

Popular Stories

maxresdefault

No iOS 19: Apple Going Straight to iOS 26

Wednesday May 28, 2025 11:56 am PDT by
With the design overhaul that's coming this year, Apple plans to rename all of its operating systems, reports Bloomberg. Going forward, iOS, iPadOS, macOS, tvOS, watchOS, and visionOS will be identified by year, rather than by version number. We're not going to be getting iOS 19, we're getting iOS 26. Subscribe to the MacRumors YouTube channel for more videos. iOS 26 will be accompanied by...
iPhone 17 Pro Blue Feature Tighter Crop

iPhone 17 Pro Launching Later This Year With These 12 New Features

Tuesday May 27, 2025 9:10 am PDT by
While the iPhone 17 Pro and iPhone 17 Pro Max are not expected to launch until September, there are already plenty of rumors about the devices. Below, we recap key changes rumored for the iPhone 17 Pro models as of May 2025: Aluminum frame: iPhone 17 Pro models are rumored to have an aluminum frame, whereas the iPhone 15 Pro and iPhone 16 Pro models have a titanium frame, and the iPhone X ...
28 years later iphone 1

Filmmakers Used 20 iPhones at Once to Shoot '28 Years Later'

Friday May 30, 2025 7:27 am PDT by
Sony today provided a closer look at the iPhone rigs used to shoot the upcoming post-apocalyptic British horror movie "28 Years Later" (via IGN). With a budget of $75 million, Danny Boyle's 28 Years Later will become the first major blockbuster movie to be shot on iPhone. 28 Years Later is the sequel to "28 Days Later" (2002) and "28 Weeks Later" (2007), which depict the aftermath of a...
Generic iPhone 17 Feature With Full Width Dynamic Island

iPhone 17 Display Sizes: What to Expect

Thursday May 29, 2025 11:38 am PDT by
Apple's iPhone 17 lineup will include four iPhones, and two of those are going to get all-new display sizes. There's the iPhone 17 Air, which we've heard about several times, but the standard iPhone 17 is also going to have a different display size. We've heard a bit about the updated size before, but with most rumors focusing on the iPhone 17 Air, it's easy to forget. Display analyst Ross...
macOS 26 visionOS Inspired Feature

macOS 26 Rumored to Drop Support for These Five Macs

Thursday May 29, 2025 5:31 am PDT by
The next major version of macOS, now dubbed "macOS 26," is rumored to drop support for several older Intel-based Mac models currently compatible with macOS Sequoia. According to individuals familiar with the matter cited by AppleInsider, the following Macs will not be supported by the next version of macOS: MacBook Pro (2018) iMac (2019) iMac Pro (2017) Mac mini (2018) MacB...
iOS 26 Mock Rainbow Feature

With iOS 18 Jumping to iOS 26, Will Apple Renumber iPhones Too?

Thursday May 29, 2025 1:59 pm PDT by
With the next-generation version of iOS and other 2025 software updates, Apple is planning to change its numbering scheme. Rather than iOS 19, which would logically follow iOS 18, Apple is instead going to call the update iOS 26. Apple plans to use 26 across all of its platforms (the number representing the upcoming year), which will presumably be less confusing than having iOS 19, macOS 16,...
iOS 19 visionOS UI Elements

6 visionOS-Inspired Design Elements Coming to iOS 26

Friday May 30, 2025 3:26 pm PDT by
With iOS 26, macOS 26, tvOS 26, and watchOS 26, Apple is planning to debut a new design that's been described as taking inspiration from visionOS, the newest operating system. With WWDC coming up soon, we thought we'd take a closer look at visionOS and some of the design details that Apple might adopt based on current rumors and leaked information. 1. Translucency Inside Apple, the iOS 26...
iphone 16 teal

iPhone 17 Base Model Now Said to Feature A18 Chip and 8GB of RAM

Friday May 30, 2025 11:07 am PDT by
The latest rumored specs for the iPhone 17 base model are underwhelming. In a research note with equity research firm GF Securities this month, Apple analyst Jeff Pu said that the lowest-end iPhone 17 model will be equipped with the same A18 chip that is used in the iPhone 16 base model. The chip will continue to be manufactured with TSMC's second-generation 3nm process, known as N3E, he...