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Apple Close to Signing ‘iRadio’ Deal With 2 Record Labels

Apple Close to Signing ‘iRadio’ Deal With 2 Record Labels

CNET is reporting that Apple is close to signing a deal with both Warner Music and Universal Music Group for its rumored ‘iRadio’ music streaming service. Negotiations between the company and record labels had previously been said to be at a standstill because of the low royalty rates Apple was offering.

iTunes Streaming


…CNET’s sources say that Apple’s music service will bring alternate revenue streams in addition to unique features that are not offered by other streaming music services.

The unique features are said to be as follows:

  • A quick way for consumers to buy a song they hear, potentially boosting download sales from iTunes, as well as a revenue share of new audio ads Apple is planning to add to the free service, according to sources.
  • The product would be tied to iTunes, and available on mobile devices.
  • The service, according to sources, most closely resembles Pandora because it doesn’t offer on-demand listening. Apple is building some unique features, such as the ability to jump back to the beginning of a song, according to one person briefed on the company’s plans.

CNET’s sources do warn that the deals have not as yet been finalized, and could fall through. Apple will also need to work out a deal with Sony Music Group, but continues to aim for a summer launch.

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