Apple's newly announced music streaming service, Apple Music, is upsetting a handful of independent United Kingdom-based music labels who house artists such as Adele and Arctic Monkeys (via The Telegraph). Under the terms being proposed by Apple, labels will receive no compensation during the three-month free trial given to Apple Music users. The labels argue that this trial period will "literally put people out of business," and refuse to support the service, which launches in under two weeks on June 30.

applemusic
According to Andy Heath, the chairman of industry lobby group UK Music, no British independent labels have agreed to Apple's terms or plan to in the future. Most of the labels claim Apple hasn't thoroughly prepared the labels for the launch, and that the time between its announcement and launch has left little time for contract negotiations.

“If you are running a small label on tight margins you literally can’t afford to do this free trial business," Heath stated. "Their plan is clearly to move people over from downloads, which is fine, but it will mean us losing those revenues for three months.

Apple hasn’t thought this through at all and it’s not like them. They can’t spring a contract like this on us three weeks from release."

Apple has attempted to reassure skeptical labels that once the three-month free trial ends, Apple Music will support a 71.5 percent revenue sharing contribution to labels backing the streaming service. The number will even be slightly higher -- about 73 percent -- outside of the United States to counterbalance the no royalty payment policy during the trial period. It's still not enough for some labels, according to Heath.

“I think the dynamic here is nothing to do with the royalty rates but there are elements of these deals that are just too difficult for smaller labels to do. It will literally put people out of business.

Smaller labels would be completely screwed. Apple just has to move on this.”

Apple Music was officially unveiled last week during WWDC as a three-tiered service with basic music streaming, a live global radio station, and a social media platform that allows fans to follow favorite artists. The long-awaited service will officially launch on June 30 with a three-month trial period that will allow everyone to try it out for the summer. Afterwards, Apple Music will cost $9.99 per month for users who want to stick around.

Top Rated Comments

supersalo Avatar
138 months ago
I don't understand how the labels are "losing revenue" during the 3 months? Are they claiming that downloads will cease entirely during those 3 months? If so, that's a bit of a stretch. It's akin to the movie industry claiming that each pirated movie equates to one lost sale (when they know full well that someone pirating a movie doesn't mean they had any intention of buying it).
Score: 17 Votes (Like | Disagree)
Cassady Avatar
138 months ago
I must be slow. How is "not receiving royalties" for three months, for something that didn't exist before, going to cripple Indie record labels? It's not like royalties that they are currently receiving, are going to be taken away somehow? Apple Music is surely an add-on to already existing streams? Can someone explain?
Score: 11 Votes (Like | Disagree)
Corrode Avatar
138 months ago
I'm surprised by the lack of sympathy for indie labels but maybe I shouldn't be. Personally, I don't think music streaming is sustainable and I don't think people will notice until years down the road when we finally notice that there's just not as much music being produced as there used to be.
Score: 7 Votes (Like | Disagree)
CouponPages Avatar
138 months ago
Pointless. Simply pointless. For decades artists not only didn't get paid when their songs played on traditional airwaves, but they often bribed the station managers into playing their music.

So we've gone from a point where independent artist are willing to pay to have their music heard, to a point where they feel robbed when somebody plays their song.

I have a massive music library. I've never stolen a song. A lot of the songs I've bought since streaming came along are a direct result of hearing new music for the first time on the free versions of Pandora, iTunes Radio or iHeartRadio.

When an independent artist needs to be paid to be heard for the first time, they simply won't be heard.
Score: 7 Votes (Like | Disagree)
superleccy Avatar
138 months ago
Say you are an Indie label with a moderately successful underground band (or, a band running its own label, the line is blurred these days, but same difference) with a hotly anticipated new album scheduled for release this summer. You've worked your arse off on recording, post-production and promotion, and the band have made personal sacrifices whilst they spend time writing, rehearsing and recording too. Fortunately recording is cheaper than it used to be, thanks to the awesome Logic Studio X and everything else, but you still can't actually afford to pay the band anything, because you only broke even on the last album due to promotion costs, which are actually paid by all labels, even for artists that look like they've "come from nowhere entirely under their own steam".

You've promised the band that they'll get something back this time, apart from just screaming fans. The launch gigs are booked (which by the time you've paid venue, transport and accommodation fees you're already making an irreversible loss on), the bribes for favourable reviews have been paid (yes, that is really how it works... how else do you explain half the crap out there?) and the t-shirts are printed. You're running on impossibly tight margins, and you're relying on iTunes revenue to bring in a couple of grand so you can break even or maybe even better, because Spotify and YouTube pay near-as-damnit nada.

Then along comes Apple Music. If you sign-up, then all your fans listen to your highly anticipated album for free. Zero income. Legitimised piracy. By the end of the summer when revenue starts to trickle in, the fans have moved onto some other band (as they should) and maybe only listen to your album occasionally. Your only revenue opportunity is missed. You've helped promote the new music service of one of the most cash-rich corporations in the world, and got basically **** all back. The band, disheartened, give up and train as accountants. No Soft Bulletin, no OK Computer, no Parklife, no <insert your favourite indie band's career-defining third album here>.

If you don't sign up to Apple music, then people might at least still buy the vinyl or get the download from Amazon or iTunes. You'll loose out on people hearing your album on Apple Music, but you live to fight another day.

So, of course I'm not signing up my indie label to Apple music.

Some of you lot don't have a clue.

SL
Score: 7 Votes (Like | Disagree)
Corrode Avatar
138 months ago
So? Just get on board once the free trial is over then. What do they want? Apple to just give them money? Will music magically be outlawed in 90 days?
You seem to have missed the point or misread the article.

What if I told you I'll hire you for a job with a really great salary, but I can't pay you for the first three months. Would you do it? Could you afford it? Or would you literally be homeless if you took the offer?
Score: 6 Votes (Like | Disagree)

Popular Stories

iphone 17 models

No iPhone 18 Launch This Year, Reports Suggest

Thursday January 1, 2026 8:43 am PST by
Apple is not expected to release a standard iPhone 18 model this year, according to a growing number of reports that suggest the company is planning a significant change to its long-standing annual iPhone launch cycle. Despite the immense success of the iPhone 17 in 2025, the iPhone 18 is not expected to arrive until the spring of 2027, leaving the iPhone 17 in the lineup as the latest...
samsung crease less foldable display ces 2026%402x

Foldable iPhone's Crease-Free Display Tech Spotted at CES 2026

Tuesday January 6, 2026 3:04 am PST by
CES 2026 has just provided a first glimpse of the folding display technology that Apple is expected to use in its upcoming foldable iPhone. At the event, Samsung Display briefly showcased its new crease-less foldable OLED panel beside a Galaxy Z Fold 7, and according to SamMobile, which saw the test booth before it was abruptly removed, the new panel "has no crease at all" in comparison. The ...
airpods pro 3 glitter

AirPods New Year's Deals Include Up to $99 Off AirPods Max, AirPods Pro 3, and AirPods 4

Sunday January 4, 2026 8:04 am PST by
Now that the calendar has flipped over into January, steep discounts on popular Apple products have become more rare after the holidays. However, if you didn't get a new pair of AirPods recently and are looking for a model on sale, Amazon does have a few solid second-best prices this week. Note: MacRumors is an affiliate partner with some of these vendors. When you click a link and make a...
govee floor lamp

CES 2026: Govee Announces New Matter-Connected Ceiling and Floor Lights

Sunday January 4, 2026 5:00 am PST by
Govee today introduced three new HomeKit-compatible lighting products, including the Govee Floor Lamp 3, the Govee Ceiling Light Ultra, and the Govee Sky Ceiling Light. The Govee Floor Lamp 3 is the successor to the Floor Lamp 2, and it offers Matter integration with the option to connect to HomeKit. The Floor Lamp 3 offers an upgraded LuminBlend+ lighting system that can reproduce 281...
AirPods Pro 3 Year of the Horse Feature

Apple Launches Year of the Horse AirPods Pro 3 for Lunar New Year

Monday January 5, 2026 11:28 am PST by
Apple has designed a limited edition version of the AirPods Pro 3 to celebrate Lunar New Year, and customers in select countries can purchase them starting today. The Year of the Horse Special Edition AirPods Pro 3 feature a unique horse emoji character that's otherwise unavailable. Customers in China, Hong Kong, Taiwan, Malaysia, and Singapore are able to buy the AirPods, and they'll be...
Belkin 25W Battery magnetic

CES 2026: Belkin Announces Magnetic Ring Power Bank, Modular Dock, and More

Sunday January 4, 2026 3:02 pm PST by
Belkin today announced a range of new charging and connectivity accessories at CES 2026, expanding its portfolio of products aimed at Apple device users. UltraCharge Pro Power Bank 10K with Magnetic Ring The lineup includes new Qi2 and Qi2.2 wireless chargers, magnetic power banks, a high-capacity laptop battery, and USB-C productivity accessories, with an emphasis on higher charging...
m4 macbook air blue 2

iPadOS and macOS 26.2 Double 5GHz Wi-Fi Bandwidth for Wi-Fi 6E Devices

Monday January 5, 2026 1:57 pm PST by
With the release of iPadOS 26.2 and macOS Tahoe 26.2, Apple has improved the Wi-Fi speeds for select Macs and iPads that support Wi-Fi 6E. Updated Wi-Fi connectivity specifications are listed in Apple's platform deployment guide. The M4 iPad Pro models, M3 iPad Air models, A17 Pro iPad mini, M2 to M5 MacBook Pro models, M2, M3, and M4 MacBook Air models, and other Wi-Fi 6E Macs and iPads now ...
anker new charger 2026

Anker Introduces Pre-Order Discounts on 2026 Nano Chargers, Alongside Big New Year's Sale

Monday January 5, 2026 10:17 am PST by
Anker announced a new series of products at CES this week, and most of them will begin rolling out to customers later in January. A few of these devices, including the Nano Docking Station and 45W Nano Charger, have pre-order discounts on Anker's website, and we're also tracking big discounts in Anker's New Year's sale. Note: MacRumors is an affiliate partner with some of these vendors. When...