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  • Apple's iRadio Deal May Prove to be More Beneficial for Labels than Pandora

    Recent reports claim Apple is close to making a deal with two major record companies to stream their respective tracks on a purported “iRadio” music streamer, with the arrangement said to be more lucrative for labels than existing rates paid out by Pandora. Citing people who seem to be familiar with the situation, CNET reports that Apple’s supposed deal will offer cheaper per-stream rates equivalent to about half of what Internet radio giant Pandora pays and it will also include additional sources of income for record labels.

    The sources are saying Apple plans to leverage the installed iTunes user base to drive further revenue for record companies participating in the “iRadio” initiative. One method employs an easy way for listeners to buy a song they hear on the music streaming service with the option being to cut labels in to a revenue sharing scheme of audio ads that Apple is planning to launch with the service.

    Although rumors have been circulating for months, sources are claiming Warner Music and Universal Music Group could possibly ink a deal with Apple within the next week. The same people also reported that the arrangement is so tenuous that the deal might fall apart as there are many concerns being aired over the proposed added revenue model. According to one source:

    The only thing concrete is the per-play-rate. If you end up having no ad revenue, that’s still zero. And we won’t know what the buying habits will be. Will people streaming still take the time to buy from iTunes?
    Ultimately we’ll just have to wait and see what comes of the ordeal.

    Source: CNET
    This article was originally published in forum thread: Apple's iRadio Deal May Prove to be More Beneficial for Labels than Pandora started by Akshay Masand View original post
    Comments 2 Comments
    1. peakay's Avatar
      peakay -
      Why isn't Spotify mentioned? Pandora is a major label only service. The reason why streaming has become do popular is services like Spotify, and online radio. Pandora picks the music they want you to listen to, not vise versa.
      The real issue I see with all these streaming services is the back end to the musicians. Spotify pays out $0.005 per song play. Of course the major labels get more, but I would hope that sooner or later musicians will start to get what they deserve for their talents.
    1. thumper_net's Avatar
      thumper_net -
      Iradio will be too expensive , with only 2 record labels so far its not going to be that good , plus for outside the usa iradio wont be available as record companies in every country have different rules , something that will take apple years to sort out , iradio should be free as we pay enough to own an iphone , but for the competition iradio wont be a problem unless apple make an android and windows phone app , seeing as android is nearly 70% worldwide the most popular os , apple's iradio will only effect ios users a group thats getting smaller each year