The first song to be featured on Apple Music's Beats 1 radio station was "City" by Spring King, but many argued that it should have been a track off Taylor Swift's 1989. After all, Swift used her voice in the industry to get Cupertino to pay artists during Apple Music's 90-day free trial. The company's about-face benefits all artists, but those signed to independent labels might be getting the best deal in terms of royalty rates and new fans.
The Swift saga amplified the plight of independent labels like her own Big Machine Records, as well as the five that operate under Beggars Group, in negotiating with streaming services. Beggars Group called out Apple over its plan to stiff artists during its free trial, and until Swift had Apple change its tune, the label and other indies were not going to participate in Apple Music. Major labels had an easier time dealing with Apple Music, but not necessarily to the benefit of the artists signed with them.
While indie labels are, of course, interested in protecting their own interests, they also are looking out for their artists more than major labels when it comes to streaming services. An artist signed with a major label gets about 20 percent of the cut of a song from a streaming service. In contrast, most independent labels pay their artists 50 percent of streaming royalties, which is close to the 60 percent received by unsigned artists who submit songs themselves. While Beggars Group has reduced that percentage a bit, indie labels make streaming a good proposition for many artists.
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Meanwhile, streaming is an excellent way for lesser-known artists, who tend to make up the majority of the catalogs at indie labels, to find new fans. Bruno Mars doesn't need Spotify or Apple Music to increase his popularity, but those services' discovery and radio features could boost an emerging artist more than airplay on traditional radio. Beggars Group reps Adele, but it also has critically acclaimed but less popular acts like The National, The xx, Alabama Shakes, and FKA Twigs, who can all benefit from Apple Music with spins on Beats 1 or coming up under someone's "For You" suggestions.
Headed into Independence Day, Apple might have picked the perfect week to launch Music.