Apple Radio Deal Could Happen By Mid-November

Ready For 2013?

In SEPTEMBER (NET NEWS 9/7), ALL ACCESS tipped you that APPLE was in talks to license music for a custom-radio service. Now, reports BLOOMBERG, "APPLE INC. has intensified talks with major music labels to start an advertising supported streaming-radio competitor to PANDORA MEDIA INC. by early next year, according to people with knowledge of the negotiations."

The service might have launched this year, if not for a snag in talks between APPLE and SONY/ATV hit a last-minute snag (NET NEWS 9/28). Reportedly the snag was a per-song rights fee between APPLE and the publishing company.

The new talks "are centered in part around how to share ad revenue and a deal could be reached by mid-NOVEMBER, with APPLE starting service in the first three months of 2013," wrote BLOOMBERG, citing sources "who sought anonymity because talks are in progress." 

"Radio is a natural step for APPLE," BTIG LLC analyst RICH GREENFIELD told BLOOMBERG. "This helps APPLE dominate in cars, where people listen to an average of two hours of radio a day."

In order for APPLE to launch the offering, the major labels need to be on board. reportedly, executives from UNIVERSAL MUSIC GROUP, WARNER MUSIC GROUP and SONY CORP. were in a meeting at APPLE's CUPERTINO, CA headquarters recently. The report says APPLE will create an app for the iPHONE, iPAD and iPOD TOUCH, with no word on delivering music through a Web browser yet.

Pandora Stock Hit Hard By News

On WALL STREET YESTERDAY (10/25), shares of PANDORA took a beating on the news, with trading on PANDORA stock briefly halted.

Shares fell $1.09, or 11.7%, to close at $8.20. They rose 37 cents to $8.57 in after-hours trading.

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