Apple Music has reversed its payment policy, a day after the singer Taylor Swift said she was refusing to allow the company to stream her album 1989.
In an open letter to Apple, Swift said she was withholding the record as she was unhappy with the three-month free trial offered to subscribers.
Now Apple says it will pay artists for music streamed during trial periods.
"We hear you @taylorswift13 and indie artists. Love, Apple," tweeted executive Eddy @Cue.
Swift had said the plan was "unfair", arguing Apple had the money to cover the cost.
"I find it to be shocking, disappointing, and completely unlike this historically progressive and generous company," the 25-year-old said, describing Apple as one of her "best partners in selling music".
"Three months is a long time to go unpaid, and it is unfair to ask anyone to work for nothing.
"We don't ask you for free iPhones. Please don't ask us to provide you with our music for no compensation."
Apple Music launches on 30 June. It will cost $9.99 (£6.30) per month in the US for one person or $14.99 for families.
After hearing news of the company's decision on Sunday night Swift tweeted: "I am elated and relieved. Thank you for your words of support today. They listened to us.''
Mr Cue said he did not know if the Shake It Off singer would now make her album available on Apple Music - but he praised her for taking a stand.
"When I woke up this morning and I saw Taylor's note that she had written, it really solidified that we needed to make a change," he told Associated Press.
The music industry has generally supported the company bringing its vast music library to paid streaming, and the firm said it would pay 70% of the music subscription revenue to music owners.
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