Apple Pushing Hard To Launch iRadio Streaming Service This Summer

iRadio

Rumors of Apple launching a new Pandora-like music streaming service have been prevalent ever since the company acquired Lala.com a few years back.

However, we’ve also heard that the launch has been delayed as music labels weren’t too happy with the terms offered by Apple.

The Verge reports that according to “music industry insiders” the negotiations between Apple and the music labels are progressing.

Much has been written about Apple’s plan to launch a Pandora-esque service this year. Now multiple music industry insiders have told The Verge that significant progress has been made in the talks with two of the top labels: Universal and Warner. One of the sources said “iRadio is coming. There’s no doubt about it anymore.”  

The New York Post had reported last month that Apple had made an initial offer to the labels of  about 6 cents per 100 songs streamed, which was lower than the 12 cents per 100 songs paid by Pandora and significantly lower than the 35 cents per 100 songs paid by Spotify. According to the report, music labels had objected to the offer and were expecting at least 21 cents per 100 songs streamed that has been set by the Copyright Royalty Board.

Multiple music industry sources have told The Verge that Apple is pushing hard to launch the iRadio streaming service this summer. Hidden files in iOS 6.1 firmware file have also indicated that Apple is planning to launch its music streaming service.

Apple is not the only one planning to launch the music streaming service, a report in February claimed that Google is also working on a similar service.

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

Via: The Verge

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Categories: Apple Rumors, iRadio, iTunes