iTunes Radio Launches September 18th
September 11, 2013 at 4:00 AM (PT)
YESTERDAY's APPLE product showcase (NET NEWS 9/10) focused on a new mobile operating system and several new iPHONE offerings, but lost in the techfest was the offering that will most affect radio.
THE NEW YORK TIMES explained iTUNES RADIO as "APPLE Takes Aim at PANDORA," and details the offering by writing, "a decade ago, APPLE transformed the music business with its iTUNES store. Now what the music industry expects from APPLE is less of a revolution than a helping hand."
We did learn that iTUNES RADIO will launch next week on WEDNESDAY, SEPTEMBER 18th, with the webcaster included in the new iOS 7, as well as an upgrade to iTUNES software. Those two delivery methods will help APPLE place the app on millions of its devices, and gives the company "an enormous potential audience from Day 1," notes THE TIMES.
"It’s a huge opportunity on a global basis to accelerate the transition of radio listeners and advertising dollars from terrestrial to digital," said WMG EVP/Digital Strategy STEPHEN BRYAN.
How much of that potential will be a threat to PANDORA and iHEARTRADIO among others is yet to be seen.
"At this point PANDORA is one of the leading recipients of mobile advertising revenue, and is one of the most popular apps, period, across devices," said eMARKETER VP CLARK FREDRICKSEN. 'It’s tough to see it getting killed."
Record labels hope iTUNESRADIO's ability to seamlessly offer music to purchase through the iTUNES store is a hit. THE TIMES notes, "in the economy of digital music, one 99-cent download can be worth more than hundreds of streams. APPLE’s deals with labels call for it to pay 0.13 cents for every song streamed on iTUNES RADIO during its first year of operation," and adds , "APPLE will also pay music companies a portion of the service’s advertising revenue."
APPLE has posted more info here.