Report: Apple And Universal Music Group Have A Deal On 'iRadio'
Warner Music Group Said To Be Close Behind
April 12, 2013 at 4:08 AM (PT)
ALL ACCESS reported earlier this month (NET NEWS 4/3) that APPLE was closing in on a deal with both UNIVERSAL MUSIC GROUP and WARNER MUSIC to be onboard when iRADIO is launched, and now several sources are reporting that the UMG deal is done.
THE VERGE reports "APPLE is expected to sign its first internet radio licensing agreement with a major record label perhaps as soon as next week, multiple sources with knowledge of the talks have told THE VERGE. UNIVERSAL MUSIC GROUP, the largest of the major record companies, has reached the final stages of the negotiations and WARNER MUSIC is close behind, the sources said."
MACNN reports "APPLE's initial low-ball offer on royalties -- said to be about half of what PANDORA, widely thought to be one of the best deals in the industry, pays -- was not accepted, and now the iPHONE maker has agreed to pay a rate much closer to the PANDORA deal. Royalties deals for Internet-only 'stations' like PANDORA have been a crippling factor in the industry, with most major services struggling to attain profitability. APPLE, with its 400 million accounts (most with credit cards attached) and complete musical eco-system that can sell songs and albums, may have the key to making Internet-only radio streaming a viable business that benefits artists, record companies and consumers."