Previously, it was being said that both Apple and several record labels couldn’t agree on song skipping terms with sources in the know telling CNET that licensing negotiations between Apple and Sony Music specifically have been stalling talks of the iRadio music service. The New York Times recently weighed in on the situation with its own information. Apple is apparently rushing to close the necessary licensing deals with music companies so it can formally reveal the service “as early as next week.” With roughly a week until Apple’s WWDC keynote, it’s not that far off to believe that the company might be pushing hard to announce iRadio at its conference. According to The New York Times:
While it is still at odds with some music companies over deal terms, Apple is said to be eager to get the licenses in time to unveil the service — nicknamed iRadio by the technology press — at its annual developers conference, which begins June 10 in San Francisco.
As of right now, the main point of the argument is the money as Apple supposedly wants “more extensive licensing terms,” for a cost that doesn’t seem attractive. Record labels and music publishes generally want higher royalty rates and have been pushing for guaranteed minimum payments. The New York Times mentioned the following regarding the topic:
For recording rights, the labels have asked Apple to pay at least as much as Pandora’s “penny rate” — a fixed fee for every song played, currently 12 cents per 100 streams — as well as a fee whenever a user skips from one song to another.
Source: CNET, The New York Times