Apple Working On Pandora-Like Music Service


Wall Street Journal reports that according to people familiar with the matter, Apple is working on a Pandora-like custom radio service.

WSJ claims that Apple’s music streaming service will work on iPhone, iPad, iPod touch, Macs and possibly even on Windows PCs.

From WSJ:

Apple only recently initiated licensing negotiations with record labels for its putative service, and even if it does complete deals, it could be a matter of months when such a service might launch, according to these people.

The company has in the past contemplated and abandoned other interactive features, including a Spotify-like service that would have let users rent unlimited amounts of music for a fixed monthly fee. But people familiar with the current talks say they appear to be more serious than those previous tentative inquiries.

As on Pandora, the music would be interspersed with ads, in this case carried by Apple’s iAd platform, which syndicates ads to iPhone and iPad apps.

New York Times claims that according to their sources Apple’s custom-radio service would “probably take the form of a preinstalled app on devices like iPhones and iPads and might be able to connect to users’ iTunes accounts to judge their tastes”.

The reports claim that Apple is working with record labels to get a more permissive license than the one Pandora gets, so that users can you play the same song multiple times.

The reports have indicated that the launch of the music streaming service is months away and unlikely to be announced at next week’s iPhone 5 event.

Though it’s quite difficult to make money in the ad-supported music streaming service, it makes sense for Apple to bundle the service with iOS devices as it could drive more stickiness to the iOS platform and encourage more hardware sales. What do you think?

[via WSJ, NYT]

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