Apple Inc. “is demanding that record labels such as XL Recordings, the home of Adele, and Domino, the label behind the Arctic Monkeys, agree to a free three-month trial of Apple Music, during which they will receive no payment,” Christopher Williams reports for The Telegraph.
“The plan, only disclosed since the service was unveiled in at a glitzy event in San Francisco last week, has caused dismay among British labels, according to Andy Heath, the chairman of UK Music, the industry lobby group,” Williams reports. “Mr Heath told The Telegraph that to his knowledge no British independent labels have agreed to Apple’s terms or intend to on grounds they will ‘literally put people out of business.'”
“Mr Heath’s view was echoed by two record label bosses, who asked not to be identified because talks are ongoing and Apple demands strict secrecy from its partners,” Williams reports. “Apple Music is expected to have a major impact on the music market when it is introduced as part of an iPhone software update on June 30.”
Read more in the full article here.
MacDailyNews Take: Surely, if there really is a major problem here, Apple will work things out with smaller independents so as to not “put them out of business.”
But, seriously, are all of the labels’ current revenue streams going to instantly dry up the moment they sign up for Apple Music? Of course not, but this does highlight just how successful these labels think Apple Music will be; they expect their other revenue streams (downloads, Spotify, Pandora, etc.) to decline – significantly, it would seem – with the launch of Apple Music. On this, their thinking is sound (pun intended).
The potential benefits of a successful Apple Music to labels of all sizes must be considered. No short-term pain, no long-term gain.