Apple (AAPL) Stock Lower After Receiving Criticism From Record Label Beggars Group

NEW YORK (TheStreet) -- Shares of Apple (AAPL) are declining 0.79% to $126.87 in Friday's afternoon trading session after the company was criticized by independent record label Beggars Group for refusing to agree to pay artists royalties during its Apple Music trial period, MarketWatch reports.

Beggars Group represents popular artists like Adele, Alabama Shakes, Queens of the Stone Age, Radiohead, and The Strokes.

Earlier this month, Apple introduced its streaming service, Apple Music, and planned to offer consumers a three-month trial in hopes it would attract them to its $9.99 monthly service.

But Beggars Group is concerned, stating that small labels "can't afford to agree to such terms when a number of artists are set to release new albums during the first three months of the launch--slated for June 30th," MarketWatch added.

While Apple has been a "wonderful partner," the record label is struggling to see why owners and artists should bear this aspect of Apple's customer acquisition costs, MarketWatch said.

Separately, TheStreet Ratings team rates APPLE INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

"We rate APPLE INC (AAPL) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, robust revenue growth and notable return on equity. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."

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