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Apple Reportedly Still Working Out Royalties Agreements With Sony and Warner for iRadio Service

Apple Reportedly Still Working Out Royalties Agreements With Sony and Warner for iRadio Service

The Financial Times reports that Apple is still in negotiations with Sony and Warner over royalties for their iRadio streaming music service. Apple had offered roughly 6 cents per 100 tracks streamed, but is reported to have raised the offer to 12.5 cents per 100 tracks. A similar rate is paid by established music servvice Pandora.

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The Financial Times, via MacRumors:

Some music industry executives argue that cash-rich Apple should pay a higher rate than Pandora, which had 70m “active listeners” in April, because of its broader ambitions for iRadio. These include using data it already has from hundreds of millions of iTunes users to predict the selection of tracks they will enjoy, and a plan to allow listeners to purchase songs seamlessly via the iTunes store.

Those familiar with the terms say Apple was offering the label three different revenue possibilities: A royalty per track streamed, a share of iRadio’s advertising revenue, and a guaranteed minimum sum over the course of the contract that would provide a safety net just in case the number of plays or advertising dollars weren’t up to snuff.

Apple is reported to be working hard toward reaching a deal for a summer launch for iRadio, perhaps at WWDC in June.

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