Following Taylor Swift’s letter to Apple regarding her shock and disappointment with the fact that music owners would be receiving no royalty payments during Apple Music’s three-month trial period, Apple has abruptly reversed course.
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In a series of tweets sent out late on Sunday evening, Apple executive Eddy Cue announced that Apple, per Swift’s suggestion, will foot the bill for royalty payments during Apple Music’s three-month trial period.
We hear you @taylorswift13 and indie artists. Love, Apple
— Eddy Cue (@cue) June 22, 2015
#AppleMusic will pay artist for streaming, even during customer’s free trial period
— Eddy Cue (@cue) June 22, 2015
Apple will always make sure that artist are paid #iTunes #AppleMusic — Eddy Cue (@cue) June 22, 2015
Recall that Swift, in her widely circulated open letter to Apple over the weekend, suggested that Apple, with its massive bank account, could and should assume responsibility for royalty payments.
The letter reads in part:
I realize that Apple is working towards a goal of paid streaming. I think that is beautiful progress. We know how astronomically successful Apple has been and we know that this incredible company has the money to pay artists, writers and producers for the 3 month trial period… even if it is free for the fans trying it out.
Upon learning of Apple’s about face, Swift took to Twitter where she said she was elated with Apple’s decision.
I am elated and relieved. Thank you for your words of support today. They listened to us.
— Taylor Swift (@taylorswift13) June 22, 2015
As for how Apple even managed to convince music labels to agree to a lengthy royalty-free trial period in the first place, Apple, in exchange, agreed to pay music owners approximately 73% of all subscription revenue on the back end. According to Apple, that figure is a “few percentage points higher than the industry standard.”
While it remains to be seen how quickly consumers take to Apple Music, this move by Apple is certainly a great way to curry favor with artists and the music industry on the whole, especially those who have been rather vocal and critical about Apple’s intentions.
