Sony Music Reportedly Holding Out On Apple's New iRadio Service
May 10, 2013 at 4:00 AM (PT)
Last month (NET NEWS 4/12), ALL ACCESS reported that APPLE was expected to sign its first Internet radio licensing agreement with a major record label, as a deal with UNIVERSAL MUSIC GROUP, the largest of the major record companies, reached the final stages of the negotiations. WARNER MUSIC was also reportedly close behind.
But SONY MUSIC is apparently the fly in the ointment, reports APPLE INSIDER, which writes, "Licensing fees are once again holding up the arrival of APPLE's rumored radio service,".and continues, "SONY MUSIC -- the second-largest of the major record labels -- is reportedly holding out for more lucrative concessions."
Multiple reports say APPLE offered 6.5 cents per 100 tracks streamed, roughly half what PANDORA pays. The labels rejected that offer, and APPLE upped the offer to 12.5 cents per 100 tracks streamed.