Apple Caves on Streaming Music Royalty Rates, First Deal to Be Signed Next Week

Discussion in ' News Discussion' started by MacRumors, Apr 11, 2013.

  1. macrumors bot


    Apr 12, 2001

    The Verge is reporting that Apple is set to strike a licensing deal with Universal Music Group, the largest music label, by next week for its rumored Internet radio service. A deal with Warner Music would follow soon after that, according to The Verge.

    Last week, it was reported that Apple was close to wrapping a deal up with Universal Music Group and Warner Music, but no immediate time table was given and it was unclear if any side made concessions on royalty rates.

    In early March the New York Post said that one of the sticking points in the negotiations with the labels was that Apple was offering to pay half the royalty rate of Pandora, which was $0.06 per 100 songs streamed. The Verge says that Apple did not succeed in trying to undercut Pandora's rates.
    The Pandora-like service is supposed to launch later this year and is set up to help iTunes users discover new music, generate ad sales and boost sales of downloads, according to The Verge.

    However, Apple still has to strike a deal with Sony Music Entertainment and music publishers, and talks with those companies are said to not be as far along as Universal Music Group and Warner Music. If Apple is able to agree to a deal with Sony in the next couple months, it could possibly debut iRadio at Worldwide Developers Conference this June.

    Article Link: Apple Caves on Streaming Music Royalty Rates, First Deal to Be Signed Next Week
  2. macrumors 68030


    Oct 16, 2007
  3. macrumors 6502a


    Apr 3, 2009
    First time I've heard of Apple backing down on such an extreme deal.
  4. R3k
    macrumors regular

    Sep 7, 2011

    One step closer to even the possibility of being able to make a living off producing music....

    For most of us.
  5. macrumors 68030


    Sep 3, 2011
    What I'm wondering is will this streaming service be offered through a seperate app or a future version of iOS?
  6. Guest

    Sky Blue

    Jan 8, 2005
    I would think it would be integrate with iTunes to make it easier to buy songs you liked.
  7. macrumors 6502a


    May 7, 2011
    Most likely through a new iOS update. Not because they can't do it through a separate app, but because they want everyone that has an iDevice to have the app as well, sort of guaranteeing its success. As long as it doesn't become an iPhone 5S or newer exclusive then im good :cool:
  8. macrumors regular


    May 23, 2010
    My guess is that it would probably be pre-installed in iOS 7.
  9. Guest

    Dec 7, 2010
    Apple is definitely going to pull a Newsstand on this.
  10. macrumors regular


    Oct 27, 2006
    Pure Michigan
    Am I missing something here? What could possibly make this revolutionary? It just seems like they are playing catch up. Isn't the whole purpose of having your music in iCloud is so that it can be accessed when you want it?
  11. macrumors 6502

    Apr 26, 2011
    yes, we know the exact details of what this radio thing is going to do.
  12. macrumors regular

    Jul 14, 2008
    ? Huh ? What's that have to do with iTunes Radio? Plus if its not like Spotify I couldn't care less.
  13. macrumors 6502a

    Mar 25, 2010
    Agreed. If comes time to pay up, I'd rather pay for Spotify-Like service.
  14. macrumors 6502a


    May 7, 2011
    It'd be cool if the songs you "liked" could be saved locally on your device and available for purchase when you aren't connected anymore. That would make good use of that patent that was on here a few days ago.
  15. macrumors 68000


    Jul 23, 2012
  16. macrumors 65816

    Sep 16, 2007
    They are late to the game. Their normal tactic doesn't work anymore. Now they have to cave in, or they'll end up with nothing to offer, while competitors do. Probably also why you haven't seen a TV content deal yet, either. Now others are coming up, such as Intel, and Apple will be left behind if they can't make deals.
  17. JayCee842, Apr 11, 2013
    Last edited: Apr 11, 2013

    macrumors 6502a


    Jan 21, 2013
    Sounds good! More than excited for it. By the way, I don't think any other music service is as good as Rdio. They offer the same features as Spotify for the same prices, and I like it much better.

    Am I the only one here who uses Rdio?
  18. macrumors 68030


    Nov 10, 2010
    I've been a subscriber to Spotify since it came to the US and its a fantastic program. Why would I want to start all over with Apples service?
  19. macrumors regular

    Oct 28, 2012
    I just don't know what this is for. I played with Pandora for about a week and got over it when I ran out of "skips". I don't think I ever bought anything.

    How many people will want to burn up their data plans for this? I know broadcast radio sucks, but there are college/indie stations that are a free and constant source of new material.
  20. macrumors 6502a


    Jul 9, 2008
    SEC Country
    I think they have something up their sleeves if they weren't able to undercut the pricing. Must be pretty big plans so I'm excited to see...
  21. macrumors 6502a

    Jan 27, 2005
    I respectfully completely disagree. I find myself on Pandora almost always compared to Spotify, which I really only use if I want to listen to that 1 song for the 1 artist. Honestly, Spotify is too time consuming with searching. I guess I may find myself in the minority but $10 a month, rip off if you ask me. If I wanted to listen to the same music over and over again I'd turn on the radio.


    Because they over way more MILLIONS of songs than spotify does.
  22. macrumors 6502a


    Sep 16, 2008
    Surrey, BC
    Don't forget Apple's advantage in this: its content is not required to make money. Sure it does now, but Apple can afford even to lose money on iRadio, so long as overall its content deals break even. For Apple, content exists solely to sell hardware. That gives it the advantage over companies like Pandora and Spotify: they are finding it hard to make money at current royalty rates, Apple doesn't need to. It doesn't even need to play ads during streaming like the free versions of its competitors, I bet the most it will do is use iAd to show them on the screen: much less intrusive than audio ads.
  23. macrumors 6502

    Jun 12, 2009
    I already pay for Spotify and love it. Apple is going to have to do something big to steal my dollars from Spotify.
  24. macrumors 6502

    Jan 26, 2006
    SLC, Utah
    All together now: "Steve would never have caved!"
  25. macrumors 68000

    Aug 11, 2009
    That is the biggest problem since iAd hasn't been very profitable for Apple or publishers.

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