Apple may not be able to launch iRadio music streaming service due to licensing issues

iradioGoogle just launched Google Play All Access music subscription service at the I/O conference earlier this week, and Apple’s widely expected to follow with the launch of the much rumoured “iRadio” streaming service in June at WWDC.

However, Apple is finding it hard to convince music labels to agree to its unconventional licensing model, which could potentially delay a WWDC launch.

Unlike players like Spotify, Rdio and more recently Google, Apple’s streaming model will be different, according to The Verge:

Google chose to offer a standard subscription music service very similar to those built by Spotify and Rdio, and that meant the terms had largely been established, according to multiple sources close to the talks. Apple, on the other hand, is pioneering a hybrid web and radio service — one that resembles Pandora but melds it with some on-demand features, the sources said. The licensing agreement had to be created from scratch.

Google was also open to paying music labels in advance, while Apple is known to not offer advance payments. Apple’s has however agreed to give record labels a cut from the ads iRadio will reportedly show, a per-play fee and a minimum guarantee.

While Apple has Universal and Warner Music on-board for iRadio, Sony/ATV and BMG remain unconvinced, and Apple’s Internet services team, led by Eddy Cue, would have to pull a miracle to get them ready by next month, in time for WWDC.