Apple’s planned online radio service unsettles record labels

Rumors emerged over the past couple of days that Apple is planning to launch its own internet radio service similar to Pandora, most likely to compete in the incredibly competitive market place that is music streaming. iTunes completely changed the way we listened to music (legally), however, cheaper services like the aforementioned radio service and Spotify have increased significantly in popularity and make paying for albums and downloads seem ridiculous. Although some listeners still enjoy feeling like they “own” the music, value for money, iTunes is nowhere near as economical as using Spotify. Hence, why Apple’s chiefs feel the company needs to compete.

It comes as no surprise then that record labels are getting all antsy about it. When Apple first proposed iTunes, it got a similar response, but the gamble paid off. In typical Cupertino style, the offer isn’t quite tempting enough for the producers to agree on terms yet. As reported by CNET:

Bloomberg reported this afternoon that Apple’s negotiations with the three top labels have “intensified” over an ad-support Web radio service that Apple hopes to launch early next year. But music industry executives who spoke with CNET said that some decision makers at the big record companies want Apple to sweeten the offer.

The negotiations are ongoing so the terms could change, but the sources said Apple has offered to pay a lower royalty rate than Pandora pays even though it wants to provide iTunes users with the ability to do more with the music than Pandora’s customers enjoy.

In cases like this, Apple normally gets its own way, so it’ll be interesting to see if our favorite fruit company can get this service up and running on schedule. Do you see a space for iTunes music streaming/radio? Or are you happy with Spotify and Pandora?


Via: CultofMac

Tags: , , , , , , ,

  • GregStephenson

    As you say, Apple usually gets its way. I subscribe to MOG and have been very happy with the 320 kbps quality of the music as well as the wide selection. It’s radio option allows one to play all music by a specific artist or to vary the selection by use of a “slider bar” to include similar artists. The good news is when Apple brings their service to fruition we, the consumers, get more options. I like that.

  • Compare the revenue from iTunes vs. Pandora or Spotify. Spotify’s market share among your friends may be high. But it is minuscule in the world, as is the revenue flowing from it. This is called kicking a gift horse in the mouth I think.

  • juice805

    YES. I had an idea that they should get into this long ago. I think it could be done really well if mixed with genius. It could be sort of the like Zune pass and would mix in your bought music and streaming like pandora. And that’s just what I though up, I think Apple could make an amazing service out of this.