How Google beat Apple to streaming

Amidst rumors of an Apple music streaming service, Google recently announced its own streaming service, Google Play Music All Access.

The Verge has recently posted an interesting article examining why Google has been able to launch its own music streaming service ahead of Apple, which may not even be able to finalize a deal in time for a WWDC release next month.


According to published reports, Sony/ATV has rejected Apple’s terms, it has been rumored that Apple was proposing to pay around half the royalties of other streaming services. The Verge has also learned that BMG Rights Management is also holding out.

Despite this however, there is still momentum behind the initiative, with groups such as Universal Music group, which has agreed to license its music, anxious to see Apple join the streaming game.

Google was able to get the jump on Apple because its own service is based largely on the Spotify/Pandora model, so most of the terms were already established. Apple is planning a hybrid web and radio service, so terms need to be created from scratch. It appears Google was also able to speed up the process by paying advances to major copyright owners, something Apple has refused to do.

The Verge also claims that the Spotify model Google’s service is based on is a much more lucrative business for record companies compared to webcasting, which is a closer fit to Apple’s rumored iRadio.

The music industry would be very happy to welcome Apple into streaming, however, whilst the initiative remains less lucrative and more complex than existing streaming models, Apple’s deal is going to move a lot slower than Google’s did.

Via: The Verge


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