Report: iTunes Has Deal With Warner Music Group; Google Eyeing Spotify To Jumpstart Cloud-Based Service
April 25, 2011 at 4:06 AM (PT)
ALL ACCESS reported FRIDAY (NET NEWS 4/22) that APPLE had succeeded in procuring deals with at least two of the four big music labels in the last two months, possibly signaling that the rumored iTUNES streaming music service is imminent. Now, THE NEW YORK POST reports APPLE's iTUNES boss, EDDY CUE, has already inked a deal with WARNER MUSIC GROUP and is said to be close to agreements with SONY MUSIC and EMI. However, APPLE doesn't appear to be near an accord with market leader UNIVERSAL MUSIC GROUP."
APPLE is looking to roll out its new service before GOOGLE. Both companies were surprised last month (NET NEWS 3/31) when AMAZON.COM launched its cloud-based music player, beating their two larger rivals to the punch.
GOOGLE is still reportedly in talks with U.K.-based SPOTIFY. Those talks have been happening since OCTOBER 2010. GOOGLE is running into some roadblocks, writes THE POST, particularly with WARNER MUSIC GROUP. The disagreement is largely over how payments are made.
"WARNER wants a license deal that would offer an advance against future earnings," one source told THE POST. "The payment model for both GOOGLE and APPLE is based on fees per subscriber rather than how many songs consumers want to store in the cloud," the report said.
"Record labels are hoping for as many viable partners as possible so that they aren't beholden to one dominant service the way they are to APPLE's iTUNES for digital sales, industry sources said."