Apple and Sony 'iRadio' Negotiations Stalling Over Skipped Songs

[MacRumors]

Earlier today a report suggested that the launch of Apple's upcoming streaming music service deemed "iRadio" may be delayed due to difficult negotiations with Sony Music and Warner Music Group.

CNET is offering some additional information on Apple's trouble with Sony Music, explaining that the fees to be paid for skipped songs have become a point of contention between the companies.

Apple and Sony Music, the world's second largest music label, are still trying to hammer out details over how much Apple would pay for songs that people listen to a fraction of and then skip, according to people familiar with the negotiations.

While Apple's music service is said to be more similar to Pandora than Spotify, Apple does plan to deviate from Pandora's rigid station-based listening rules by giving users extended control, like the ability to rewind or skip a song after listening to a small portion of it. Pandora limits its users to 12 skips per day and pays the full royalty rate for each skipped track.

Apple has faced continual struggles over pricing during negotiations, originally offering to pay just half of Pandora's royalty rate while demanding more flexibility. The company later agreed to up its offered price, but it may not be willing to make further concessions as an Apple-branded music service offers additional perks that other music streaming sites can't compete with, such as an established market for purchasing streamed tracks.

The stalled negotiations between Apple and Sony Music are annoying other labels, who are eager to see iRadio launch. Apple finalized an agreement with Universal Music earlier this month and is close to signing a deal with Warner Music Group, according to CNET's sources.

That skipping has become an issue is frustrating executives at the other labels because they see Apple's free radio service as a potential boon for the music industry overall and are eager to help Apple get it launched.

Apple was pushing for a summer launch of iRadio, with possible plans to unveil the service at its annual Worldwide Developers Conference in June, but it is unclear if the company will be able to meet that deadline.

Article Link: Apple and Sony 'iRadio' Negotiations Stalling Over Skipped Songs

[komodrone]

0 People using it means 0 skips. Does it matter Sony?

[JoshGlzBrk]

No one wants a bloody radio ffs.

Just give me itunes entire library to stream in spotify form and you would get up to $15 a month out of me.

[AustinIllini]

Somebody wants to get paid.

[Northgrove]

So they don't think you should be allowed to dislike music? WTF.

[Brandon263]

Originally Posted by JoshGlzBrk

No one wants a bloody radio ffs.

Just give me itunes entire library to stream in spotify form and you would get up to $15 a month out of me.

Spotify does seem to have negotiated an amazing deal. Why doesn't Apple just negotiate based on what Spotify currently has?

[SandboxGeneral]

The stalled negotiations between Apple and Sony Music are annoying other labels...

The skipping thing is also annoying to people who want use the Pandora service too. I was ready to pay for Pandora One until I found out that it didn't remove the skipping limit.

If I don't want to listen to a song, then I don't want to listen to it. I don't think the labels should be charging the providers for skipped songs. If it wasn't listened to, then you don't need to get paid.

The music and movie labels are the most annoying companies in America when it comes to the entertainment industry.

[Michaelgtrusa]

Life.

[Small White Car]

Originally Posted by JoshGlzBrk

No one wants a bloody radio ffs.

Just give me itunes entire library to stream in spotify form and you would get up to $15 a month out of me.

The problem is that this would destroy the iTunes download business. Would those $15 fees make up for that? I doubt it.

A Pandora-like-format would put a dent in downloads, sure, but it would allow the downloading business to survive in some form alongside iRadio.

[tann]

I agree that I'd pay more for a Spotify 'iTunes' service where I can download anything from iTunes for offline listening.

They do have more songs than the other services so I'd happily pay a bit more. Especially for the sort of integration they'd give us on the iPhone.

[Compile 'em all]

Sony: The Party Pooper.

[Doctor Q]

Apple (irresistible force) vs. Sony (immovable object).

[bushido]

lol those stuck in the 90s labels trying to hold onto the past with every little redic straw tryin to make money

[ajvizzgamer101]

Originally Posted by Small White Car

The problem is that this would destroy the iTunes download business. Would those $15 fees make up for that? I doubt it.

A Pandora-like-format would put a dent in downloads, sure, but it would allow the downloading business to survive in some form alongside iRadio.

I am pretty sure I heard somewhere that people spend on average 40 dollars a year on iTunes Music. 15*12 is 180 dollars.

[DarkWinter]

As if I'd continue to listen to songs I don't like just because I'm not permitted any more skips. Surely most people would just switch off at that point?

Spotify model please...

[Porco]

Originally Posted by MacRumors

Sorry, such nonsense forces us not to really bother then. OK!

[WhoDaKat]

They want to get paid for the songs people don't listen to? Of all the money grubbing, piece of greedy crap moves, this is the stupidest thing I have ever heard of. Launch without them. I can see how the other music labels are getting pissed, its like being able to listen to the radio and just click to buy what you are listening to. Thats worth a billion times what Pandora and Spotify do. Sony is showing us once again how pathetic they have become.

[Alumeenium]

skipping is Why I Use SPOTIFY and not pandora

looks like I'll be "Skipping" iRadio too!

[mm201]

Wait, shouldn't the provider have to pay less, not more, to skip a song? Since a whole song wasn't provided?

Or do they mean to imply their music is so bad you need to pay them to make it stop?

[soup4you2]

So far with my very limited time playing with it, I've been extremely happy with Google's new all pass system.

It's kinda like spotify, pandora, and party shuffle all in 1.

[Killa Aaron]

Originally Posted by Brandon263

Spotify does seem to have negotiated an amazing deal. Why doesn't Apple just negotiate based on what Spotify currently has?

Because Sony needs money and Apple has it.

[thermodynamic]

Originally Posted by JoshGlzBrk

No one wants a bloody radio ffs.

Just give me itunes entire library to stream in spotify form and you would get up to $15 a month out of me.

Leasing isn't buying.

I'll pay for the songs I like, preferably to the artist directly since they did the work and therefore deserve the money, and not have to worry about a magical OFF switch or any other form of SaaS chicanery...

[Parasprite]

Originally Posted by ajvizzgamer101

I am pretty sure I heard somewhere that people spend on average 40 dollars a year on iTunes Music. 15*12 is 180 dollars.

I doubt the average person would go for it then. It would have to offer something better than what is offered to justify an added bill.

Then again, I now pay ~$96 a year for Netflix, whereas before I didn't even have cable or a TV, and payed less than that on DVDs/iTunes TV shows each year so maybe not...

[bdkennedy1]

So if a user skips a Sony song, then play another Sony song. Problem solved.

[marksman]

Apple should launch it with a configuration option to exclude Sony music from the service and explain why. If people choose to include Sony music they will be unable to skip their songs.

Make blocking Sony the default option and I bet Sony gets in line very quickly.