New iTunes Radio, Is It Bad For Music Artists?

Apple is so well loved by consumers that when they set a new trend, millions are sure to follow. At the keynote address today, Apple announced a new music service, iTunes Radio. It is set to launch in the US (with more countries to follow) in two versions, a free ad supported service, and the other which is an ad-free version (if you have a Match subscription which costs $25 per year). As a musician who earns money from mp3 music sales and royalties, I can tell you that if consumers embrace this new service, mp3 downloads would likely suffer. What about royalties?  Well, royalties for streaming radio services will often pay an artist a fraction of a cent per play. See where this is going?

If consumers flock to streaming all of their favorite music, they will likely buy fewer mp3 downloads. As far as discovering new artists, I don’t think that iTunes Radio is going to help unsigned indie acts. More than likely, suggested playlists and artists (which Apple puts together based on your listening history) will likely be fairly known, major label acts (as it is with other music services).

(With the new iTunes Radio, you can compile playlists of your favourite artists and listen to it on all iOS devices, Mac and PC computers, through your iTunes software or app. Your play history is stored in iCloud so you no longer have to sync your devices to listen to your preferred artists. Apple will likely earn many millions from its new found revenue stream: corporate ads running along side your music via a radio service.)

New iTunes Radio ios7

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