We reported last week that Apple was still finding it rough going in its attempt to convince major record labels to come on board its planned “iRadio” streaming music service. Sony and Warner were reported to be holding out, even though market king Universal had agreed to terms. Now, many are wondering how did Google announce its own music service ahead of Apple?
For starters, Google chose to offer a standard subscription music service very similar to those built by Spotify and Rdio, and that meant the terms had largely been established, according to multiple sources close to the talks. Apple, on the other hand, is pioneering a hybrid web and radio service — one that resembles Pandora but melds it with some on-demand features, the sources said. The licensing agreement had to be created from scratch.
The report’s sources also claim that number four music publisher BMG is also holding out on agreeing to Apple’s terms. Although there is still significant momentum behind iRadio, and many parties involved would like to get everything signed and sealed as soon as possible, it’s quite possible Apple may not be able to kick-off the service at next month’s Worldwide Developers Conference.