Independent record labels feel run over by Apple Music. The service is being launched with three free months and under agreements to pay Apple a penny in compensation for songs that are streamed over the period.
It causes problems for the smaller companies, says Andy Heath, chair of the British trade organization UK Music.
Read more: Then much the record companies for the Apple Music
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- If you run a small record label with small mariginaler you literally can not afford this period of free-thingy. Their plan is apparently to transfer people from the downloaded [music], which is okay, but it means that we will lose revenues for three months, “he told The Telegraph.
The companies have recently been informed of the terms of the agreement, and it is only a few weeks until the Apple Music launched on 30 June. Unlike Spotify, where listenings from free users providing less compensation, Apple gives no compensation at all during the three-month free period all new customers.
Learn more: Apple Music lacks free music – it may violate US antitrust laws
According to Andy Heath has no independent British record company signed agreements with Apple and I will never do it as long as it is on the condition that “literally going to drive people out of business”.
If the companies do not sign the Apple Music get proper holes in the library. Artists like Adele, Arctic Monkeys and Radiohead are all companies that UK Music represents.
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