Just days ago, Apple had determined to have artists and labels foot the bill for the three month free trial of its music streaming service; however, after an outcry from independent labels and Taylor Swift, the company changed its policy.
For each song that is streamed free, Apple will pay 0.2 cent for the use of recordings, a rate that music executives said was roughly comparable to the free tiers from services like Spotify. This rate does not include a smaller payment for songwriting rights that goes to music publishers; Apple is still negotiating with many publishers over those terms, several publishing companies confirmed on Wednesday.
According to the report, just hours after the company announced its policy change, Apple executives began negotiating a new policy in New York with independent labels. By Tuesday afternoon, a new proposal was presented that paid royalties on free streams and addressed other concerns including the policing of content uploaded by artists to Connect.
Music executives say these rates would apply to all labels but no word yet on whether its 71.5% royalty rate has been reduced to the standard 70%.