Apple Music Facing Problems From Labels

Posted: Jun 19 2015, 7:12am CDT | by , in News | Latest Business News

 

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Apple Music Facing Problems from Labels
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Music fans all over the world rejoiced when they found out that Apple would be releasing a music program and allowing for three months of free play. However, there is a bit of a catch - Apple won't be paying the labels. Not paying the labels not only means that the artists won't get paid, but it also means that producers, mixers, musicians, writers, and even the maintenance people will also see a lack of funds.

So many independent labels are simply bailing on the new streaming music source - at least for now.

However, it isn't just these smaller labels, Taylor Swift, the biggest selling music artist of our time and known streaming hater has said her collection won't be available on Apple music.

The labels are now coming together. In a blog posted on their website, Beggars Group, the parent of a group of legendary independent labels such as 4AD and Matador, had been in discussion with Apple over the launch of its new music streaming service, but it isn’t happy with the deal the company is offering independent artists. Beggars Group is arguably the largest and most influential independent group of labels in Europe. Matador Records, 4AD, Rough Trade Records and XL Recordings are four main labels that help make it up. Bands on Beggars' labels include Adele, The Cult, White Stripes, Vampire Weekend, Basement Jaxx, Radiohead, Gary Numan, The Strokes, The Cocteau Twins, Lou Reed, Queens of the Stone Age, and dozens of others.

The post said: “In many ways the deal structure is very progressive, but unfortunately it was created without reference to us, or as far as we know any independents, and as such unsurprisingly presents problems for us, and for our coming artist releases.”

Their biggest problem is that any artist who releases an album during the three month trial period could face some pretty severe problems:

“Whilst we understand the logic of their proposal and their aim to introduce a subscription-only service, we struggle to see why rights owners and artists should bear this aspect of Apple’s customer acquisition costs,” the group continued.

“And given the natural response of competing digital services to offer comparable terms, we fear that the free trial aspect, far from moving the industry away from freemium services – a model we support – is only resulting in taking the 'mium' out of freemium."

Is it smart for these musicians to go against Apple, who is probably the company that makes them some of the most money through song and album purchases? Time will tell.

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<a href="/latest_stories/all/all/46" rel="author">Noel Diem</a>
Noel passion is to write about geek culture.

 

 

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