'Song Skipping' Reportedly The Latest iRadio Holdup
May 20, 2013 at 10:37 AM (PT)
Earlier this month (NET NEWS 5/10), ALL ACCESS reported SONY MUSIC was holding up APPLE's iRADIO service over licensing fees. SONY MUSIC was reportedly holding out for more lucrative concessions. Multiple reports said APPLE offered 6.5 cents per 100 tracks streamed, roughly half what PANDORA pays. The label rejected that offer, and APPLE upped the offer to 12.5 cents per 100 tracks streamed.
But it looks like it's more than just those fees keeping APPLE from debuting its service. CNET reports, "APPLE and SONY MUSIC, the world's second-largest music label, are still trying to hammer out details over how much APPLE would pay for songs that people listen to a fraction of and then skip, according to people familiar with the negotiations."
The other labels are concerned over SONY's 'skipping songs' roadblock. Why? CNET notes the issue "is frustrating executives at the other labels because they see APPLE's free radio service as a potential boon for the music industry overall and are eager to help the company get it launched. Streaming music is the fastest-growing segment of the recorded music industry, and APPLE's offering, designed for the iPHONE and linked to iTUNES, could speed the growth of Internet radio that much faster."