Apple Music Compares To Spotify With Trial Period Royalty Rates, But No Ads

Apple Music will pay out 0.2 cents per stream during the three month free trial period, a rate comparable to the rate Spotify pays for its free tier, according to The New York Times.

The main difference here is that Spotify's free period includes ads and never ends, whereas after three months Apple Music users would need to start paying to continue accessing the service. This figure does not include songwriting payouts, which are still under negotiations, according to NYT sources. Both rates would apply to all labels, rather than being individually negotiated per label.

It was yesterday reported that Apple has signed up over 20,000 indie labels by striking a deal with label representative Merlin. Deals have also been struck with Beggars Group and PIAS. These deals are partly thanks to the concessions Apple has made on free trial period payouts.

"I am pleased to say that Apple has made a decision to pay for all usage of Apple Music under the free trials on a per-play basis, as well as to modify a number of other terms that members had been communicating directly with Apple about. With these changes, we are happy to support the deal," Merlin CEO Charles Caldas said in a letter to the group's members.

Apple Music will launch June 30 and cost $9.99 per month for an individual plan, or $14.99 per month for a family plan. A family plan can be shared with up to six people via Apple's Family Sharing service.