Apple still negotiating with Sony over iRadio terms

By , May 9, 2013

iTunes 11 (Albums)

For months we’ve been hearing rumors regarding iRadio, Apple’s upcoming streaming music service. It was initially supposed to launch in Q1 of this year, but the company has reportedly been having trouble reaching royalty terms with the record labels.

Then in April came word that it had locked up a deal with Universal, putting the project on track for a summer release. But it seems to have hit another snag this week, as a new report claims that the other record labels are still looking for better terms…

From The Financial Times:

“Apple’s much-anticipated music streaming service has hit a stumbling block as label owners are split over the terms for what industry executives have dubbed “iRadio”.

Despite signing up Universal Music, the largest of the record label majors, the iPhone maker is still negotiating terms with Sony Music, the second-largest recorded music group, while it is close to reaching agreement with Warner Music according to people with knowledge of the discussions.”

The report goes on to say that Apple initially proposed a royalty rate to the labels at roughly $0.06 per every 100 tracks it streams, but it just bumped up the offer to $0.12 per 100 tracks—in line with Pandora. It’s not known what rate Universal signed on for.

But that’s not the only revenue Apple is offering the labels. The company is also willing to share a portion of its ad profits with them, and is guaranteeing a minimum payout over the course of the contract in the event that the royalties and ad money come up short.

As for the service itself, it sounds like it’s going to be more like Pandora than Spotify. The FT says that Apple plans to use user download history and other data to create a ‘custom’ music stream, allowing them to discover new music so they’ll (hopefully) buy it.

Obviously, this is all mere speculation until Apple itself announces the service. But given all of the chatter we’ve heard over the past several months, there’s way too much smoke for there to not be a fire.

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  • King

    I always get Spotify Premium subscriptions for free from Telia :p

    • Gorgonphone

      i get pandora one for free….

  • http://www.facebook.com/paulmeneshian Paul Meneshian

    does anyone really care about apples music streaming service? these guys are way late on it.. they aint going to have anything to offer then the other music streaming services out there

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

      Android fanboy i take it……

      • King

        Don’t see why he would be an Android fanboy me personally would never upload my real credit card to my apple id

      • http://twitter.com/purpledodi Jens Tinnerholm

        Thats just ignorance

      • http://www.facebook.com/paulmeneshian Paul Meneshian

        no just a iphone jailbreak fanboy

    • http://twitter.com/hydrophonics J. Rockwell

      How can you possibly say they can’t offer anything new? Streaming services such Pandora rely on their great ability to mimic your listening traits and has about 800,000 songs. Spotify relies on a large library of 13 million songs as a play anything you want.

      Now if Apple can take and offer a radio service that can use their immense 30+ million song library, and do it as well as Spotify, and mimic traits like Pandora. It is a potential to be a phenomenal service.

      So they have 29 million more things to offer than Pandora!

      • http://twitter.com/purpledodi Jens Tinnerholm

        Its always good with competition. Stimulates the market and can lower the prices for us consumers. I hope they release it

      • http://www.facebook.com/paulmeneshian Paul Meneshian

        i doubt it will be like Spotify, Rdio, or MOG. More like a Pandora service. which is already old. but if it is like Spotify, Rdio, or MOG where i can stream and sync albums on a high bit rate then we might be on to something..the days of buying digital media should be over.

    • Ken

      I for one am really excited about Apple’s music streaming service. When it’s released I can finally remove Spotify from my computer.

    • Gorgonphone

      nope all i want is the iTunes radio station feature to work on my iphone…

  • Aris

    Apple should team up with Sony for the PS4.

    • pawfyd

      Oh yes! Sony is my favourite hardware company ever, right after them is Apple. If they ever cooperated to make something, that would be awesome!

    • Gorgonphone

      ummm no apple should kill sony by simply releasing an official IOS game controller…. yup iPhone and ipad3 and 4 can out put 1080i direct and wireless HDMI signal to your big screen TV soooooo it’s a no brainer..