There are a number of streaming sites available on the market, but the two biggest names in the business are Apple Music and Spotify. There is however one big advantage Spotify has over Apple music, its option of letting users listen to music for free exchange for certain limitations and ads.
With such a big advantage, you would expect Apple to introduce its own free music tier list, but that doesn’t seem like that is going to happen anytime soon. Elena Segal, head of Apple Music publishing recently spoke about the economics of music streaming services and whether artists are paid enough at a British government hearing.
During the hearing, Segal confirmed that it is highly unlikely that Apple will ever have a free version of Apple Music.
According to Segal, “We don’t think that an ad-supported service can generate enough revenue to support a healthy overall ecosystem. And it would also really go against our fundamental values on privacy.”
Segal also suggested that Apple was open to the idea of a new model for paying artists. The model Segal was referring to is called equitable remuneration (ER). Essentially, ER is used by radio stations to pay artists and music labels. When ER is used as compensation, royalties split 50/50 between labels and artists, according to Musically. Under the current payment method, artists only get around 15% of the streaming revenue.
— Geeky Gadgets (@GeekyGadgets) February 26, 2021
What this means is that artists might be getting a slight increase in compensation for the number of plays they get on Apple Music, but don’t expect to get a free version of Apple Music anytime soon.