Apple streaming service held back by low royalties

Reports from the New York Times and the New York Post are suggesting that Apple’s potential music streaming service is being held back by low royalty offers.

According to the reports, Apple is battling with labels over the price to be paid for streaming. It appears Apple is offering labels 6 cents per 100 songs streamed, which is only half of that offered by competitor Pandora. It appears Apple is trying to undercut streaming prices in order to offer a cheaper service than competitors. Understandably, the record labels seem a little less enthusiastic about the prices offered.

Yesterday we reported that Apple execs had been meeting with the CEO of Beats Electronics to discuss the audio companies service “Project Daisy”, with particular focus on the business model and rollout plans.

A successful streaming service would most likely see complete Apple domination of digital music, the success of iTunes has ensured Apple already has one foot in the door. Would Apple dominated digital music be a good thing? Or is competition more important?

@TiP_Stephen

Via: 9to5 Mac

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