Anonymous “sources with knowledge of the situation” have told The Verge that there are some bright points to consider in the otherwise troubled start of Apple Music. Pointing to the comparatively successful launch of the streaming radio station Beats 1, The Verge suggests that Apple’s contracts with major music labels included the right to launch up to five more stations — for instance, “a Beats 2 station headquartered in Australia or Asia,” or seasonally available stations. The report claims that labels already receive more money for plays on Beats 1 than on Pandora, hinting that the launch of additional stations could be lucrative for artists…
The report notes that the labels are taking a “wait and see approach” regarding Apple Music’s subscriber base, viewing all of the current users as “trialists” until Apple’s initial free trial period with early adopters ends in October. Thus far, Apple Music does not appear to have caused further erosion of paid iTunes music downloads, but downloading has been declining, and the download numbers are expected to fall further if more people sign up for Apple’s streaming service. Should subscriptions radically increase, however, payouts to the labels and artists could rebound relative to their currently low numbers.
