Apple's best efforts to bring an iRadio service to its customers in the first quarter of 2013 could go wasted as negotiations reach a stalemate.
An article in the New York Times suggests negotiations between Sony/ATVâ€”a key record company as they also hold EMI's publishing catalogueâ€”is holding up the service. Apple is, however, close to finalising its deal with Ascap and BMI music, who own the rights to most songs.
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A separate article in the New York Post suggests Apple is low-balling record companies by offering them 6 cents for every 100 songs streamed. Such an offer is lower than Pandora's supposed 12 cents per 100 songsâ€”which is already below the Copyright Royalty Board's standard 21 cents for digital streamingâ€”and less than Spotify's 35 cents.
Apple's 'iRadio' is believed to be a free service pre-installed on iOS devices. The service will generate revenue through Apple's iAds advertising platform and although unconfirmed by Apple, several references have been found in iOS' code.
The Internet radio market is quickly getting crowded with offerings from Spotify, Pandora, Last.fm. Rdio and JB HiFi Now, and let's not forget the upcoming Project Daisy from Beats by Dre. However, Apple's success with iTunes and its stronghold in the mobile market give it a competitive edge in the streaming radio industry.
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