Apple Music Streaming Service Terms Dismay Indie Record Companies

Advertisement
By Ben Sisario, The New York Times | Updated: 18 June 2015 10:55 IST
Apple's new streaming music service will not arrive until June 30, but the company has already upset independent record companies because of its proposed licensing terms.

The new service, Apple Music, includes downloads for sale and a $10-a-month subscription streaming feature along the lines of Spotify or Rhapsody. Apple has said that at least 71.5 percent of the revenue from the service will be paid out in royalties, but labels and music publishers will not be paid during a three-month trial - a deal that major record companies have apparently agreed to but one that has proved unpalatable to many smaller ones.

On Wednesday, Beggars Group, one of the world's largest indie labels, whose acts include Adele, Vampire Weekend and Thom Yorke of Radiohead, posted a statement saying that, while it considered Apple "a wonderful partner for the last decade," it was puzzled by the lack of royalty payments during the trial. "We struggle to see why rights owners and artists should bear this aspect of Apple's customer acquisition costs," the statement said.

Apple declined to comment.

Since Apple's new service was unveiled last week, others in the independent sector have openly questioned its proposed licensing terms. While the 71.5 percent rate that Apple has offered narrowly exceeds the 70 percent that is standard on many such services, label executives say they worry that the loss of streaming income from a new release that comes out during Apple's trial could be devastating.

Advertisement

The Association of Independent Music, a trade group in Britain, said this week that the Apple deal "does not meet a standard of commercial fairness that we can endorse," while the group's counterpart in the United States, the American Association of Independent Music, has advised its members, "please do not feel rushed to sign Apple's current offer."

Advertisement

© 2015 New York Times News Service

 

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Advertisement

Related Stories

Popular Mobile Brands
  1. OTT Releases of the Week (Feb 16 - Feb 22): Know What to Watch This Weekend
  2. Realme P4 Lite With 6,300mAh Battery Launched at This Price in India
  3. Here's When Xiaomi Will Launch the Xiaomi 17 and Xiaomi 17 Ultra Globally
  4. Google Launches Gemini 3.1 Pro; Pomelli Updated With Photoshoot Feature
  5. Samsung Galaxy Buds 4 Leak Again as Dummy Units Surface Online
  6. Realme C83 5G Price Leaked; Here's How Much It May Cost in India
  7. Xiaomi Teases a New Computing Device, New Tablet Expected to Launch Soon
  8. Xiaomi 17T, Xiaomi 17T Tipped to Launch Four Months Earlier Than Usual
  9. Motorola Edge 70 Fusion India Launch Teased; Might Launch With This Chip
  10. Sony to Shut Down Demon's Souls Remake Developer Bluepoint Games
  1. Xiaomi Teases India Launch of New Computing Device; New Tablet With Keyboard or Laptop Expected
  2. Realme C83 5G India Price, RAM and Storage Configurations Leaked Online
  3. Xiaomi 17 Series Global Launch Date Announced; Xiaomi 17, Xiaomi 17 Ultra Expected to Debut
  4. Google Blocked 266 Million Risky App Installs, Prevented 1.75 Million Policy-Violating Apps in 2025
  5. Motorola Edge 70 Fusion India Launch Teased on Flipkart; Leaked Marketing Image Hints at Snapdragon 7s Gen 4 SoC
  6. Google Releases Gemini 3.1 Pro With Ability to Execute Complex Tasks; Pomelli Gets New Photoshoot Feature
  7. Xiaomi 17T Pro, Xiaomi 17T Tipped to Launch Earlier Than Previously Expected, Chipset Details Leaked
  8. Google Chrome Updated With Split View, Built-In PDF Markup Tools, and More Features
  9. Realme P4 Lite Launched in India With 6,300mAh Battery, 13-Megapixel Camera: Price, Specifications
  10. Samsung Galaxy Buds 4 Leak Again as Dummy Units Surface Online: Expected Price, Features
Gadgets 360 is available in
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2026. All rights reserved.