Apple is set to pay labels 0.2 cents per stream during its Apple Music free trial period, which is set to kick off on June 30 and last up the three months.
From the NYT:
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.
And according to Billboard, Apple may pay out an additional 0.047 cents per stream for rights, meaning Apple could pay 0.247 cents total per stream during the free trial period.
This is at least comparable to a service like Spotify, which used a roughly 35% royalty structure for streams made by free tier users.
Apple recently ironed out deals with independent labels after reversing course and agreeing to pay royalties for songs streaming during the upcoming free trial period.
The Worldwide Independent Network endorsed the Apple Music deal, saying Apple Music is a good deal for artists.
“I am pleased to say that Apple has made a decision to pay for all usage of Apple Music under the free trials on a per-play basis, as well as to modify a number of other terms that members had been communicating directly with Apple about. With these changes, we are happy to support and endorse the deal,” said WIN Chief Alison Wenham.
“Apple has a long standing, deep rooted relationship with the music community and has always helped ensure artists get paid for their work. We think Apple Music provides artists with a business model that’s good for the long term and we look forward to its launch on June 30.”
So apparently, the indies are ok with the rate.