Each service and platform has its business models and features. In the case of Apple Music, the only way to access is through a traditional subscription.
Each service and platform has its business models and features. In the case of Apple Music, the only way to access is through a traditional subscription.
On this matter, Elena Segal, editorial director of Apple Music, recently made some statements that drew strong attention, confirming that Apple Music will never have a free edition.
Apple Music’s business model does not contemplate advertising
According to statements reported by Musically, Segal commented that a free model based on advertising, similar to that of YouTube or Spotify, for example, would not work. In opposition, he added that:
We don’t believe that an ad-supported service could generate enough revenue to support a healthy overall ecosystem. And it would also actually go against our core values of privacy.
Without going too far, this advertising model brings with it the need to create commercial profiles, which would lead to personalized advertising. They have another mechanism to pay artists in their way.
Segal also gave her personal opinion on whether the current system of paying artists and songwriters was fair and, more precisely, whether the streaming music industry should modify to what is now known as a user-centric policy. She presented the following example:
If an artist (e.g. Drake) got 2% of the streams in that period, then their rights holders get 2% of the royalties. But what that also means is that essentially 2% of the royalties generated by each subscriber will go to Drake’s music, even if they didn’t listen to it at all.
For each listener, the royalty portion of their subscription is divided only among the rights holders of the artists they listen to. If they’re a fan of metal, folk, or classical, that’s where the royalties go. If they only listen to Drake, his music secures 100% of the amount.
Focusing on the user feels fairer: Your money goes to the artists you like.
In any case, Segal said that at Apple they welcome these discussions and in his organization, they are willing to talk about these issues. Admitting that it is difficult to define whether this is the best approach to compensating artists, he commented:
We think it’s certainly very interesting, and the key for us is that there has to be a consensus among all licensees. It’s not a model that can apply to some licensors and not others. The only way to reach a consensus like that is to come together as an industry.
The hearing, which Elena Segal is part of on behalf of Apple before the British government, is part of an economic investigation into music streaming. Representatives of Spotify and Amazon Music are also present.
Apple Music is not the only platform in this category that does not offer a free plan permanently. However, like most of the providers of these services, if you want to get to know the service, you can sign up and access its initial free trial.
