Apple’s Justification for Apple Music’s Three-Month Free Trial Period: Slightly Higher Payments

Peter Kafka, writing last week for Recode:

Here are the real numbers, according to Robert Kondrk, the Apple executive who negotiates music deals along with media boss Eddy Cue: In the U.S., Apple will pay music owners 71.5 percent of Apple Music’s subscription revenue. Outside the U.S., the number will fluctuate, but will average around 73 percent, he told Re/code in an interview. Executives at labels Apple is working with confirmed the figures. […]

Apple won’t pay music owners anything for the songs that are streamed during Apple Music’s three-month trial period, a bone of contention with music labels during negotiations for the new service. But Kondrk says Apple’s payouts are a few percentage points higher than the industry standard, in part to account for the lengthy trial period; most paid subscription services offer a free one-month trial.

Not sure a 1.5 percent difference justifies two extra months of free service (compared to the de facto industry standard one-month free trial), but it’s not nothing.

Sunday, 21 June 2015