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

Categories: Apple,
By: , IntoMobile
Friday, March 8th, 2013 at 3:39 AM

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]

About The Author

Dusan Belic

Dusan has been using smartphones since their introduction and is now following the latest trends in the industry. The "convergence" is what he's most excited about, and writing about it is the next logical thing to do. He thinks that using a smartphone is what everyone who cares about their time should do. In addition to his interests in mobile phones, Dusan also loves to experiment with the latest web and mobile 2.0 services. The idea of accessing and managing your information from any device no matter where you are simply amazes him. Whether it's an online to-do list, note taking service or a video sharing social network, he's there to try it out. He admits though, he's still searching for the ultimate web-based organizational tool, which "sings" perfectly with the mobile PIM application. Dusan used to run SymbianWatch.com which later became part of IntoMobile. He lives in Serbia, South-East Europe, from where he edits the site on a daily basis.

  • PeterSteinbeck

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