Zero percent of anything is usually never good.
Apparently, that’s how much Apple’s newly announced streaming service Apple Music plans to give to music rights owners during the three-month long free trial given to users of the upcoming application, according to a leaked contract received by Digital Music News.
Apple announced the new music streaming service on June 8th, with a statement from Apple’s Senior Vice President Eddie Cue saying that the app will be a”revolutionary streaming service.” The companies supposed contract specifically states that “For Trial Users, and for Comp Accounts that iTunes provides on a gratis basis, no license or royalty fees, including Fees, will be due to Company.” After the trial, Apple would pay 58% to the rights owners. Apple radio is set to debut on June 30th.
“Freemium” services are becoming a pandemic in the music world; with Spotify being one of the top companies to use advertisement as financial support. The possibility of Apple Music becoming an even bigger service, with an anticipated 100 million paying subscribers, and the rumor that Apple Inc. has been reaching out to music rights owners to relinquish their contracts with Spotify , has brought about speculation; Major music corporations such as Universal Music Group are now joining in on an industry-wide investigation on the validity of the contract’s context, according to Consequence of Sound.
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