Apple Music may not be as comprehensive as many hope, at least during the three-month trial period, out of which XL Recordings and Domino, two British record labels, are backing out.
The news will mean that Apple Music customers will not be able to enjoy the likes of Adele, Radiohead and Jack White during their free trial.
"If you are running a small label on tight margins you literally can't afford to do this free trial business," said Andy Heath, chairman of UK Music, a British lobby group. "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 ... Smaller labels would be completely screwed. Apple just has to move on this."
The news comes only a few days after an Apple Music contract for labels was revealed, showing that Apple would not be paying royalties for music streamed during the trial period of Apple Music, which is three months.
Apple Music will, however, include music from the likes of Universal, Sony and Warner, the "big three" record labels that are currently operating, however, these are the labels that can afford to make moves like offering a free trial. Other labels, even large ones, have to be very careful about money these days, with music sales having sharply declined over the last five years due to the rise of music streaming.
In fact, Heath says that he knows of no independent British labels that have agreed to be a part of Apple Music, something that could significantly impact the Apple Music library and cause potential customers to stick with the likes of Spotify and other streaming services. Even artists on major labels have taken a stance against what they see as unfair conditions in the music business, such as when Taylor Swift opted to pull her entire library of music from Spotify.
Apple Music itself was unveiled at Apple's Worldwide Developers Conference, with a release date of June 30. The service includes a radio station run by BBC DJ Zane Lowe, which will be a 24/7 station. As mentioned, the service will offer customers a three-month trial period, after which it will cost $9.99 per month. While it will not pay royalties during the trial period, it will pay artists a little more than the industry standard, at 71.5 percent in the U.S. and 73 percent in other countries, compared with the standard of 70 percent.
