Apple to Sign Deal for ‘iRadio’ Streaming Service with Universal Music Next Week

Last week, it was reported that Apple was close to signing deals with Universal Music Group and Warner Music for its rumored Pandora-like streaming music service, unofficially dubbed iRadio.

The Verge reports that Apple is set to strike a deal with Universal Music Group, which is the largest music label as soon as next week. 

The New York Post had reported last month that Apple had made an initial offer to record 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 that 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. The Verge now reports that Apple has agreed to pay a royalty close to what Pandora pays.

However, we’ve heard that Apple’s looking to get a more permissive license than Pandora for its radio service, which would let users play the same song multiple times and give early access to new releases.

Apple is also close to signing a deal with Warner Music, but it still has to strike a deal with Sony Music. Apple is pushing hard to launch its Pandora-like music streaming service this summer.

Rumors of Apple launching a new Pandora-like music streaming service have been prevalent ever since the company acquired a few years back. I’m assuming that Apple is planning to include this feature in iOS 7, which is expected to be unveiled at the WWDC 2013, which usually takes place in June.

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