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Apple Music pays no royalties for the three-month trial

Apple's new Music streaming service will pay more than 70 per cent revenue from subscriptions to music owners, but won't pay anything for the free three-month period, NDTV said in a report on Tuesday.

"Apple will not pay music owners anything for its three-month free trial period. The company's pay-outs were slightly higher than industry standard, the website reported, citing Apple executive Robert Kondrk“, NDTV writes in the report.

In the US, Apple will pay music owners 71.5 per cent revenue from its $9.99 (£6.40) subscription plan to music owners and publishing rights owners. In Europe, that number will rise to 73 per cent, NDTV says.

Last week Apple unveiled Apple Music, its take on the music streaming industry. Even though the competition is quite stiff with the likes of Spotify, Rdio and IHeartRadio, Apple is looking to shake things up with its massive amount of existing users (roughly 800 million), as well as its deep pockets.

With its fairly low prices, especially for the family packs, Apple is forcing the competition to lower their prices, which could mean that either Apple has gotten a great deal with music publishers, or it’s subsidizing its service so that it can kill off the competition.

However, Spotify won’t give up that easily. As we recently reported, Spotify now has more than 20 million paying subscribers, as well as deep pockets of its own, ready to shove its hands deep into them for this fight.

With a total of 75 million active users, Spotify won’t be an easy target for Apple.