Music Labels Downplay Imminent Launch of New Apple Music Service

[MacRumors]

In September, The Wall Street Journal reported that Apple was in licensing negotiations with record labels to create a Pandora-like music service. The next day, the New York Post reported that talks were hung up over licensing fees.

Earlier today, it was Bloomberg breaking the story. The wire service reported the music service would launch in the first quarter of next year, and, just like last time, anonymous record company executives are pouring water on the deal, saying record companies still want Apple to improve its offer. This time, CNET has the story:

The negotiations are ongoing so the terms could change, but the sources said Apple has offered to pay a lower royalty rate than Pandora pays even though it wants to provide iTunes users with the ability to do more with the music than Pandora's customers enjoy. Pandora, the leading Internet radio service, pays a statutory rate set by Congress. Under the terms of this rate, Pandora must limit the way users interact with songs, such as capping the number of times they can listen to the same song or an individual artist.

In exchange for this greater flexibility with songs, Apple is offering a percentage of the ad sales generated by the service. CNET's sources say that some of the sector's leaders don't believe the cut Apple put on the table is big enough. Others in the music industry, however, argue it's good for the overall business if Apple takes on Pandora.

It seems likely that these negotiations are playing themselves out in the press, as well as behind boardroom doors.

Article Link: Music Labels Downplay Imminent Launch of New Apple Music Service

[Gen]

meh.
I like Pandora.

[Worf]

Bring out iTunes 11 already!!

[bryanescuela]

Move on Apple... This will be another PING cr@p...

[sampaul]

Apple you have gotta be kidding me! Where the hell is iTunes 11? I wouldn't cared so much if the "Coming in October" teaser was not there on the iTunes website.

[studio¹³¹]

maybe fix the itunes match im paying for, first...

[samcraig]

Shocker - they want a lower rate.

Also note - the comment about giving a % of revenue on Ads.

Since iAds is a relative failure - they only hope Apple has of staying in the ad game is to have a radio like service. And guess what. Those that don't like Google because they believe Google makes you a product for their advertisers - this will be exactly how Apple operates with their music service.

I'm not against it by any stretch. I don't believe Google is evil for their business model. And I think an Apple branded streaming radio service would be great. Unless it's tied to iTunes

[Shaun, UK]

“With sales of music downloads slowing, Apple and record companies are seeking new ways for customers to discover and buy digital music.”

How about they start selling lossless music instead which is really what a lot of people want. If they can sell SD and HD movies and tv shows they can sell crappy compressed music AND CD quality lossless tracks. Or better still how about leapfrogging the CD and start selling HD music in glorious 24bit. Some of us have the expensive kit and speakers to notice the difference. The feeble Mastered for iTunes has been a total flop - give us the real thing instead.

Kids don't download iTunes music anymore - they just get a Spotify subscription for £5/month instead and adults like me continue to buy CDs because we prefer lossless music. Apple need to wake up and smell the coffee on this one.

Who needs another internet radio service? There are already plenty to choose from and iTunes already has radio stations.

PS I agree - when is iTunes 11 coming out for heavens sake. Does "late Oct" mean the 31st? They should have given an update at this weeks media event. I strongly suspect a "delay" announcement coming soon.

[Medic311]

start shorting Pandora

[JoeyCloverfield]

Originally Posted by sampaul

Apple you have gotta be kidding me! Where the hell is iTunes 11? I wouldn't cared so much if the "Coming in October" teaser was not there on the iTunes website.

I would feel exactly the same way except it's not the 1st of November yet so…

[bushido]

record labels tz ... they still believe the youth can be brought back to physical cds, how naive

welcome to october 2012 ... oh and where is iTunes 11? :P

[HiRez]

Haha, I read that last line initially as "behind bedroom doors". What!?

[realeric]

Is Pandora headed for bankruptcy? Their stock down 12%.

[mattopotamus]

Originally Posted by bryanescuela

Move on Apple... This will be another PING cr@p...

I think the exact opposite. It will be so wildly successful. If it was similar to spotify, it would be great....especially being integrated into IOS.

[damir00]

So, basically, Apple wants to be a radio station.

[thefourthpope]

Tired and unwilling to follow the OP link. I love Pandora One (the pay version) especially paired with PandoraJam (record pandora radio to your computer). If this goes through (I kind of hope it doesn't) I'd just like similar options.

[ufwa]

Of course they down play it. Why would they cave to Apple's demands when the already have Pandora paying a HIGHER rate and having limits put on them.

If Pandora was exclusive to Android or not available on iOS at all, Apple might be in a position to bargain. But its on both and found on various other devices too.

[the8thark]

Originally Posted by thefourthpope

Tired and unwilling to follow the OP link. I love Pandora One (the pay version) especially paired with PandoraJam (record pandora radio to your computer). If this goes through (I kind of hope it doesn't) I'd just like similar options.

I did try the article's link. And I had to go through another MR article link to get to the quoted article. Not professional to quote yourself in an article.

Anyways back on topic. I believe the music labels hold the card here and Apple has to get them to play ball.

[MyMacintosh]

All these "Itunes 11!" people are starting to sound like the "We want new iMac news!" people of last week.

[Stella]

Originally Posted by Shaun, UK

How about they start selling lossless music instead which is really what a lot of people want.

Thing is, most people don't care.. and the current quality is good enough. A vast majority wouldn't know what lossless is in the first place and would be surprised that the current format isn't the best quality - and couldn't tell the difference between iTunes music and a CD. Remember, Apple cater towards the low end of the 'average' user... not people like you, who obviously are aware of lossless and audio quality.

[herr_neumann]

Genius Radio?


And to the music industry execs, that's cool bro. Keep limiting my options, I am sure there is a torrent file somewhere...

[eagandale4114]

Apple isn't late with iTunes 11. Still have a few days to go.

[Fanboi4life]

Unless its ad free, no care...

[Shrink]

On MANY threads, the repititious question "where is iTunes 11" is repeated ad nauseam.

I appreciate that many are very interested in iTunes 11, but continually asking the question will not hasten the appearance of the software upgrade.

Folks, it will come when it comes...

[NoIdeasOriginal]

If this is true, I hope Apple won't take long rolling the service out to us Irish people. We don't have Pandora, Rdio or Spotify so having a service like this that integrates well with the Mac and iOS devices would be really awesome.