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Original poster
Apr 12, 2001
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itunes_radio_round_icon.jpg
Apple is still in negotiations with Sony and Warner over its iRadio streaming music service, reports the Financial Times. Apple had offered roughly 6 cents per 100 tracks streamed, but later reportedly raised this to 12.5 cents per 100 tracks -- similar to the rate paid by Pandora.

Although the company has reached an agreement with Universal Music, the largest record label, the FT claims other labels are still looking for better terms. Apple is reportedly working hard at reaching a deal and wishes to launch the 'iRadio' service at some point this summer, perhaps at WWDC in June.
Some music industry executives argue that cash-rich Apple should pay a higher rate than Pandora, which had 70m "active listeners" in April, because of its broader ambitions for iRadio. These include using data it already has from hundreds of millions of iTunes users to predict the selection of tracks they will enjoy, and a plan to allow listeners to purchase songs seamlessly via the iTunes store.

The people familiar with the terms said that Apple was offering labels three tranches of revenue: a royalty per track streamed, a share of iRadio's advertising revenue and a guaranteed minimum sum over the course of the contract that would provide a safety net in case the number of plays or amount of advertising sold disappoints.
The FT notes that Apple is intentionally not launching an on-demand service like Spotify in order to avoid cannibalizing purchases from its iTunes Music Store. Instead, the iRadio service will allow customers to discover new music and likely direct listeners to the iTunes Store to buy music they enjoy.

Article Link: Apple Still Negotiating With Sony and Warner Over iRadio Royalties
 

ChadMobley

Guest
Jul 12, 2012
11
0
Florida
If it isn't one company that's greedy, it's another...how about being pro consumer for once! Without us, these companies are no where.
 

aheying7

macrumors member
Jun 13, 2012
43
5
As a high school student, I can say everyone I know quit using iTunes and uses Spotify exclusively now. That's what Apple needs to compete with, NOT Pandora. In other words, you should always be able to pick the song like Spotify.
 

tann

macrumors 68000
Apr 15, 2010
1,944
813
UK
An on demand Spotify like service is the exact thing that I would absolutely love! I love Spotify but for some reason even in offline mode it seems to drain my battery a lot faster than the regular music app.
 

ArtOfWarfare

macrumors G3
Nov 26, 2007
9,558
6,058
As a high school student, I can say everyone I know quit using iTunes and uses Spotify exclusively now. That's what Apple needs to compete with, NOT Pandora. In other words, you should always be able to pick the song like Spotify.

As a college student, I agree with you completely.

Something weird I've found: I listen to a lot of music on Spotify on a free plan, and about once a week I find a song I like so much that I buy it on the iOS music store just so I can listen to it on my iPhone. So Spotify basically is doing all the work of convincing me to buy the song, but then Apple is the one collecting the money when I decide to buy it.
 

bradl

macrumors 603
Jun 16, 2008
5,923
17,399
The FT notes that Apple is intentionally not launching an on-demand service like Spotify in order to avoid cannibalizing purchases from its iTunes Music Store. Instead, the iRadio service will allow customers to discover new music and likely direct listeners to the iTunes Store to buy music they enjoy.

In short, wouldn't this be aggregating music, which pretty much goes against the very policy Apple adopted to crack down on apps like AppGratis, Appshopper, etc.?

If so, this smacks of hypocrisy/"do as I say, not as I do".

BL.
 

TC03

macrumors 65816
Aug 17, 2008
1,272
356
I think Spotify (or other services alike) are the future. Still, I do see why Apple won't cannabalize the iTunes store.
 

bbeagle

macrumors 68040
Oct 19, 2010
3,541
2,981
Buffalo, NY
Something weird I've found: I listen to a lot of music on Spotify on a free plan, and about once a week I find a song I like so much that I buy it on the iOS music store just so I can listen to it on my iPhone. So Spotify basically is doing all the work of convincing me to buy the song, but then Apple is the one collecting the money when I decide to buy it.

Hahaha. Yes, exactly the same for me.

I listen to Spotify or Pandora to find music, and use iTunes to buy the music I listen to most.
 

BJMRamage

macrumors 68030
Oct 2, 2007
2,713
1,233
if they had more subscribers, iTunes/Apple model should be cheaper right? like buying in bulk...
 

extradryny

macrumors member
Jun 2, 2011
88
16
Apple is intentionally not launching an on-demand service like Spotify in order to avoid cannibalizing purchases from its iTunes Music Store. Instead, the iRadio service will allow customers to discover new music and likely direct listeners to the iTunes Store to buy music they enjoy.

Tim Cook, 1/23/13:

“I see cannibalization as a huge opportunity for us,” Cook said Wednesday. “Our core philosophy is to never fear cannibalization. If we don’t do it, someone else will."
 

HobeSoundDarryl

macrumors G5
I really can't see why so much effort is being used for what seems like a fairly weak proposition.

I'm with you. A better Pandora doesn't seem like much of a "next big thing". I don't get how "Apple needs this" and similar. I'm sure it will be nice and probably have a few benefits Pandora has missed. On the other hand, I'm sure it will have some "why'd they do that?" lock-down that Pandora doesn't match.

But I can't think of anything here that could be "revolutionary." It's like we're chasing a fading medium of music distribution in hopes of reviving it. Maybe after this rolls out, Apple can go into the VHS tape rental business. That was hot 10+ years ago and, with the Apple spin, maybe they can turn it into something too.

Similarly, I read that bit about the ad revenues and I wonder why people are going to want to both (potentially) pay something for this service AND listen to ads rather than just play the playlists of music they like on their iDevices for free. Yes, there's something to be said for discovering new music but we already have Pandora and Spotify for that. Is the convenience of one-click purchasing really all that? If so, we're excited to pay for something with ads so that we can easily pay for something else when we hear a song we like. Pay for the opportunity to conveniently pay more. That's innovation!

Could we use LTE to download all of this music we're paying to get to pay for so that we can burn through our data allocation even faster? That way we can pay for the convenience of getting to pay for songs and getting to pay AT&T, Verizon, etc even more because this is yet another "innovation" that seems to revolve around burning through hard-capped data as quickly as possible. Win for Apple. Win for AT&T, Verizon, etc. Win for Music Studios.

Anyone noticing a trend in iDevice innovation over the last couple of years? What does SIRI, Maps, and probably this iRadio all have in common? Hint: think about data burn vs. hard caps set by AT&T, Verizon, etc. Has Apple iDevice innovation pretty much moved to a filter involving what else could be developed to burn through capped data even more quickly?
 
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foobarbaz

macrumors 6502a
Nov 29, 2007
873
1,953
Some music industry executives argue that cash-rich Apple should pay a higher rate [...] because of its broader ambitions [...] and a plan to allow listeners to purchase songs seamlessly via the iTunes store.

Charge Apple more because they might bring in additional revenue. The music industry doing it what it does best.
 

Ajones330

macrumors 6502a
Jul 9, 2008
563
16
SEC Country
I think this is major for Apple, if they can integrate this into iOS. I use itunes match and love it but having this seems like it would put even more music at my fingertips. Wonder how it would affect the battery...
 

arvacker

macrumors member
Oct 6, 2011
59
7
Xbox music Pass is the music service to beat!
Wonderfully integrated with their smartphones and Win 8!
It is very close to perfect! (only the design of the music app is not that good - okay, it's bad)
 

HobeSoundDarryl

macrumors G5
That seems to be the plan. Except in that model, there isn't an added bill if you watch too much television (data) in a given month. In this plan, you can pay for the service, have commercials and if you use enough data to go through your cap you can pay some more. Triple threat. Everybody (that is a corporation) wins.
 

mytdave

macrumors 6502a
Oct 29, 2002
620
800
Hmm

Maybe Apple shouldn't have low-balled them in the 1st place, then maybe they'd be more open to faster, friendlier negotiations.

I still don't understand services like spotify or pandora. Having a "radio" service is convenient at times, but I STILL like to buy and OWN (despite how some people interpret music purchases) my music.
 

samcraig

macrumors P6
Jun 22, 2009
16,779
41,982
USA
Conjecture all day what you think it should be or what you want. Apple will deliver what they want and what they think you need. Never been any different, has it?
 

Gym Hellwig

macrumors regular
Feb 21, 2013
169
5
Who cares about this crap? Nobody wants another streaming radio service.

Spotify will eat an Apple for lunch.
 
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JayCee842

macrumors 6502a
Jan 21, 2013
589
0
As a high school student, I can say everyone I know quit using iTunes and uses Spotify exclusively now. That's what Apple needs to compete with, NOT Pandora. In other words, you should always be able to pick the song like Spotify.

Well said. Spotify is the true rival here.
Spotify > Pandora :)
 
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