Apple iRadio stalls
May 10, 2013
Apple’s plans for a radio streaming service have reportedly stalled again, with label bosses at Sony Music pushing for better terms in ongoing negotiations.
Apple has has signed a deal with Universal Music, the largest of the three major record labels, and is reportedly close to an agreement with Warner Music.
But according to the FT, executives at Sony are holding out for a better deal. Apple is said to have originally offered the labels a royalty of just over 4p for every 100 tracks it streams, according to the report, later raising that to around 9p, in line with the rate paid by internet radio service Pandora.
But the labels are arguing that Apple should pay a higher rate than services such as Pandora because of it’s larger user base and bigger ambitions for it’s radio player, dubbed ‘iRadio’.