Apple is rumored to be working on a radio service that would compete with Pandora; however, a recent report from CNET says deals for the service are 'nowhere near' completed.
The rumors continue to swirl but multiple music industry sources have told CNET in recent weeks that the deal that Apple has offered for iRadio has left the major record companies -- Sony Music Entertainment, Warner Music Group and Universal Music Group -- cold.
My sources say that, at a minimum, a deal with all the majors is nowhere near to being completed. Even if Apple sweetens its offer or the big labels change their mind tomorrow, these deals take a while to put to bed. Even in the best case scenario, it will still be a while before we see iRadio.
Pandora, the largest web radio service, saw an 18% drop in its share price recently, following its earnings report which revealed an expected loss of loss 6 to 9 cents a share in the fiscal fourth quarter.