A report from Billboard claims that Apple has signed two major indie music labels — Beggars Group and Merlin Network — for Apple Music. These independent music labels represent over 20,000 indie artists and distributors from across the world.
Both labels signed a deal with Apple after the company decided to pay royalties to artists during the initial three-month free trial period of Apple Music. Apple reversed its decision after many indie artists, including Taylor Swift, criticised it for their decision to not pay artists anything during the trial period.
Below is the letter than Merlin Network’s CEO, Charles Caldas, wrote to members of the company after finalising the deal with Apple.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.
As you know Merlin has not historically had a direct contract with Apple. Apple has direct deals with our members, and that continues to be the case. Therefore, the amendments referred to above will apply to your existing direct agreements, and the amended contract will shortly appear on iTunes Connect. However, Apple has indicated that in the future they are open to engaging with Merlin as a central point of communication and negotiation for our membership.Apple has a long standing, deep rooted relationship with the music community and has always helped ensure artists get paid for their work. We think Apple Music provides artists with a business model that’s good for the long term and we look forward to its launch on June 30.We would remind you as ever that each member must make its own independent decisions in relation to Apple Music and its business in general.
While Apple will be paying artists royalties during the three-month trial period, the royalty rate will be lower than what it will be paying after the trial period ends.
Apple Music is slated to launch on June 30th. The streaming music service will cost $9.99 per month, and will also feature a 24×7 live radio station called Beats 1.
[Via Billboard]
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