Apple Nears Deal With Labels for iRadio Music Service?
Apple is reportedly close to striking a deal with Warner Music and Universal Music Group for a streaming music service, reports CNET. The deal is said to be better than what the labels are currently getting from Pandora.
Much has been made in 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. That includes a quick way for consumers to buy a song they hear, potentially boosting download sales from iTunes, as well as a revenue share of new audio ads Apple is planning to add to the free service, according to sources. The product would be tied to iTunes, and available on mobile devices.
While the deals could still fall apart, Apple is reportedly determined to get licensing sorted out in time for a summer rollout. It's planning to launch in up to a dozen countries including the U.K, France, Germany, Australia, and Japan.
The company has apparently proposed a multinational sales force that would sell audio ads similar to what Pandora serves up for listeners to its free service.
A recent report from the Verge also corroborated word of a summertime launch and 'radio buy buttons' have been found in iOS 6.1 giving weight to the reports.