According to sources, Apple is very close to creating a streaming deal with, not one, but two, major music labels. The deal may far surpass the benefits that labels currently receive from Pandora.
Apple has recently been in negotiation with labels on the terms of the deal and thus far Apple will be half the per-stream rate that Pandora pays them.
Confused on how that’s better? So was I.
Apparently, iRadio would also offer new revenue streams including a quick, easy way for users to buy a song they hear hopefully raising download sales from iTunes.
Apple would share the revenue from audio ads on the free service as well. The iRadio would be connected to iTunes and available on mobile devices,
Tom Neumayr, an Apple spokesman, declined to comment.
The sources mentioned that deals with Warner Music and Universal Music Group could be signed with the next week. Keep in mind however, the deals are presently in negotiation and still have the potential to fall apart.
In order for iRadio to really take off, Apple needs to get Sony Music Group and music publishers on board as well as the labels they are in talks with now.
Apple, confident in their ability, told labels it’s determined to get all deals signed in time for a summer release.