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Apple, Inc. (AAPL: Nasdaq) has made an instant U-turn regarding royalties and their streaming music service after renowned pop star Taylor Swift said she would not deliver her 1989 album to the service.
Swift said, in a letter open to the public, that she was very “disappointed” in Apple that it would not pay producers, writers and artists during the free three month trial period when people sign up for the Apple Music service. The new streaming service starts on June 30.
However, recent tweets made by Apple’s Senior Vice President, Eddy Cue, that Apple would now be paying artists during the free trial period. The amount of the royalties to be paid is undisclosed during the trial period but will be paid on a “per stream” basis. It is known that Apple will pay music owners 71.5 percent of the subscription revenue but this could rise to 73 percent in some countries.
After the news was released, Swift said she was “elated” by the company’s reversal on royalty policy. “Three months is a long time to go unpaid, and it is unfair to ask anyone to work for nothing,” Swift wrote. “I say this with love, reverence, and admiration for everything else Apple has done. I hope that soon I can join them in the progression towards a streaming model that seems fair to those who create this music.”
Taylor Swift is a known and very vocal critic on royalty payments by streaming music services. Last year, she pulled her entire catalogue off of Spotify over a royalty dispute and how they paid singers in the industry.
