The backdown by the world’s most valuable company follows a public protest by musician Taylor Swift, who said she wouldn’t allow her latest album 1989 on the service in protest at its 'shocking lack of artist compensation’ during a free trial period.
The move by Swift, one of the most outspoken critics of streaming leader Spotify, delivers an early blow to Apple's bid to dominate the booming sector.
Swift says the tech giant, which is launching the new Apple Music on June 30, won't pay for songs streamed during a free three-month trial period for new subscribers.
After withdrawing all of her music from Spotify last year, Swift today described Apple's move as shocking and disappointing in a posting on Tumblr.
But Apple’s senior vice president for internet software and services Eddy Cue has since contacted Swift directly on social media, tweeting that "Apple will always make sure that artist are paid".
Apple Music, unveiled earlier this month, will not offer a free, ad-supported on-demand streaming service like Spotify or Pandora.
The music industry has supported Apple bringing its vast music library to paid streaming, and the company said it will pay 70 percent of the music subscription revenue to music owners.