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Thread: iRadio Music Streaming Service Faces Another Obstacle

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  1. #1
    MMi Staff Writer Akshay Masand's Avatar
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    Default iRadio Music Streaming Service Faces Another Obstacle


    Apple’s continuous efforts to bring a radio service to iPhone and iPad owners have apparently hit another obstacle as negotiations with Sony continue to drag on. Licensing fees are once again holding up the arrival of Apple’s rumored radio service according to the Financial Times. Apple seems to have already secured a deal with Universal Music and is close to an agreement with Warner Music. Sony Music, which is the second-largest of the major record labels, is holding out for more lucrative concessions though.

    Some industry executives are said to believe that due to Apple’s massive financial reserves and the likelihood that it will make a considerable amount of money off the service, the company should pay out more money to the record labels for permission to stream their product.

    Apple initially lowballed the record labels with an offer of 6.5 cents per 100 tracks streamed, which is roughly half of what Internet radio service Pandora pays. The labels were quick to reject the offer, leading to the first reports that the service would be delayed. Apple subsequently offered 12.5 cents per 100 tracks streamed and the number of labels that accepted the offer remains unclear.

    The debut of an Apple-run music streaming service has been one that has been predicted since the arrival of iTunes roughly 10 years ago. Rumors earlier this year picked up when hidden icons inside iOS 6.1 showed “radio buy” buttons tucked into the update, indicating that such a service was imminent. The stalled service, according to reports, features not only music streaming and buying but also the ability to predict which songs users will enjoy based on what they’ve listened to before.

    As of right now, Apple is reportedly offering the record labels a mix of compensation possibilities – a royalty per track streamed, a share of iRadio’s advertising revenue, and a guaranteed minimum payment should the previous two prove unsatisfactory. We’ll have to wait and see if and when everything works out and the iRadio service comes to fruition.

    Source: Financial Times

    Twitter: @AkshayMasand

  2. #2
    iPhone? More like MyPhone holyshnikes's Avatar
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    I hope it goes through. I am so sick of Pandora and Spoitfy. They either play the same songs over and over, or they pick bands that are no where close to the same style.

  3. #3
    My iPhone is a Part of Me PokemonDesigner's Avatar
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    I really hope this comes to fruition and actually works unlike Pandora.

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    iPhone? More like MyPhone
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    According to Pokemon nothing works right. You're ignorant

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    My iPhone is a Part of Me fanboyfanboy's Avatar
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    I use iHeartRadio and usually is pretty spot on.

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    Livin the iPhone Life bigboyz's Avatar
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