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?