Apple wants half of Pandora’s royalty rate for its streaming music service

Apple wants half of Pandora's royalty rate for its streaming music service

We’ve heard rumors before that Apple is working on its own music streaming service. Today we have a new tidbit of information to add to the story, suggesting that the launch was postponed due to Apple’s tough negotiations with the music industry.

According to The New York Post, the Cupertino-based tech giant is looking for a crazy rate, which is half of what Pandora is currently paying. Moreover, they also want a greater flexibility to allow its future users to skip commercials, rewind tunes and so on.

Put into numbers, Pandora is currently paying 12 cents per 100 songs streamed, while Apple wants the same number of tunes for just 6 cents. In comparison, terrestrial radio-backed online services like iHeart pay about 22 cents, while Spotify is “leading the way” with 35 cents per 100 songs streamed.

And while the fate of iRadio is still unclear, Apple hopes to come to an agreement with the industry soon and eventually launch its service in the next few months. Naturally, we’ll keep following this story and let you know as soon as something new comes up. Stay tuned…

[Via: MacRumors]

  • PeterSteinbeck

    Ok they’ll meet at 8 cents which is still an awesome deal for Apple.

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