Report: Other Labels Frustrated With Sony Over iRadio Negotiations
May 23, 2013 at 4:09 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.
Then, we learned it was more than just those fees keeping APPLE from debuting its service. CNET reported, "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."
Now, THE NEW YORK POST reports, "Music industry executives are increasingly frustrated with SONY’s slow motion negotiating tactics with APPLE" over the expected iRADIO launch.
"There’s a frustration," one senior music executive told THE POST. "[The APPLE streaming service] is a net positive for the business. APPLE is offering a 50/50 ad revenue share, minimum guarantees and royalties and the most successful ecosystem that’s ever been created. Unlike PANDORA, the up-sell opportunity is enormous."
The labels like the concept of linking APPLE’s radio app straight to the ability to buy the song via iTUNES.
The paper notes, "SONY MUSIC CEO DOUG MORRIS and SONY/ATV boss MARTIN BANDIER are said to be holding out for a better royalties deal for streaming."