According to a new report from The New York Times, Apple will pay record labels 0.2 cents for each song streamed during the three-month free trial of Apple Music. In addition, record labels will reportedly get an additional 0.047 cents per stream for song rights.
The pay is similar to what Spotify pays out for songs accessed through its free streaming tier and doesn’t include a smaller payment made to music publishers for song rights.
Initially, Apple did not plan to pay record labels during the three month free trial, but the company changed its mind after Taylor Swift posted a strongly worded letter and negotiation difficulties continued with independent record labels.
The money that Apple is paying record labels during the trial of Apple Music is significantly less than what the labels will receive after the streaming service has paying customers.
Apple Music will launch on June 30 as a part of an upcoming iOS 8.4 update. After the service’s free three-month trial it will cost users $9.99 per month or $14.99 per month which supports a family of six.