Apple’s new streaming service could offer free tracks; Will it cripple smaller labels even more?

Apple plans to follow the course set by rival Spotify with its new streaming service set to drop next week and could offer free tracks. While this is good news for some, others, especially the smaller labels, are not entirely in favor of this change due to royalty issues.

With the increase of Spotify subscribers, iTunes' download sales has significantly dropped last year proving that music listeners opt to stream songs or albums than buy them. With this, Apple decided to pursue the new streaming service which will debut on June 8 at the Worldwide Developers Conference.

According to a report, some tracks could be offered for free in the streaming service, which could also mean that Apple will introduce it in a software update for iOS.

Apple's new service will trump its known download service that can charge users $10 per album. With the new streaming feature, users will pay $10 for a month of unlimited listening.

However, this change in Apple's service might affect smaller labels that have been dealing with royalty issues. Some artists have aired their complaints about the low royalty rates they receive from streaming music.

Apple opened their doors to streaming when they acquired Beats Music last year for $3 billion. However, that move proved to be less successful as Beats only drew 303,000 paying subscribers from U.S. as per data released in December 2014.

Apple's iTunes Radio, which the company also plans to revamp by adding programs hosted by human DJs, has not really made a huge impact to music listeners when it was initially launched.

With the new streaming service, Apple aims to reign supreme in the music competing against streaming giant, Spotify. The tech company will launch their new service in their developer's service along with an improved iTunes Radio. However, Apple's new feature could pose a threat to smaller labels that face royal issues brought by music streaming.