Apple nearing deal with record labels, iRadio on track for summer release

By , Apr 5, 2013

itunes streaming

From what we’ve been hearing, Apple’s been having major problems with its so-called iRadio project. The music service was expected to launch earlier this year, but a recent report claimed things were delayed due to a dispute with record labels over royalty terms.

It appears, however, that there’s finally light at the end of the tunnel. According to a new scoop from CNET, Apple is very close to signing a deal with both Warner Music and Universal Music Group, and it’s planning to rollout the Pandora-like service this summer…

Here’s the CNET report:

“Apple is close to striking a streaming deal with two of the major music labels that could end up far sweeter for the music industry than what the labels currently get from Pandora, according to two people familiar with the negotiations.

Much has been madein recent weeks of Apple trying to squeeze the labels on terms, and the deals do have Apple paying the labels a per-stream rate that’s half of what Pandora pays. But CNET has learned that Apple’s planned music service would offer new revenue streams as well.”

Apple could reportedly sign deals with both Warner Music and Universal Music Group within the next week. But the site cautions that one, the deals have not been made yet, and two, Apple still needs to get Sony Music Group on board, as well as the music publishers.

In describing the service, CNET’s sources say it closest resembles Pandora. It’ll be free, and play music based on your genre and artist tastes—no Spotify-like music on demand. Apple hopes to make money from it with prominent links to iTunes downloads and iAd revenue.

It appears that the iPad maker is determined to start rolling out “iRadio” this summer—it sounds like it’s shooting for a June launch. And with WWDC (World Wide Developer Conference) expected to take place around that time, it sure would give it a nice stage to do so.

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  • http://www.facebook.com/jonathan.liu.7503 Jonathan Liu

    Don’t know how will this is going to work out…

    • Melvco

      It sounds like a lot like Pandora. Apple will take the artist, album or genre you like and create a custom station for you (think enhanced ‘Genius’ feature).

      And from there, Apple is hoping that you come across a song you like and click the big iTunes link to download it. That’s revenue 1.

      Revenue 2, would be through iAds. Again, Apple is hoping you discover something you like in the custom iAd stream, causing you to click through the link.

      It’s a gamble for sure. Nobody knows if this thing is going to make money or not yet. But the fact that Apple will install it on hundreds of millions of devices right out of the gate (think iOS 7), makes it an attractive bet.

  • http://twitter.com/Jack_maredit Jackson Grong

    Freeee?? Me gusta!!!

  • 笑傲江湖

    前排留名 don’t say “Ching-chong” 老外真小气。

    • 4p0c4lyps3

      Lol, sorry, Ching-chong.

  • http://twitter.com/Youngblood6415 Caleb Youngblood

    Yes and when i jailbreak it i will remove the iAds through iFile and the links :)

    • Tim smith

      Thanks. Apple probably stalks sites like these to get ideas of what the jailbreak community does. Now they read your comment and will put up a form of defense against this