Apple Wants to Pay Half as Much as Pandora to Stream Music?

Time and time again, we’ve fielded rumors of an Apple streaming music service. It’s coming, it’s not, labels are ecstatic, no licensing deals can be reached: it feels like we’ve been all over the board here. Today we’re back to looking at those licensing arrangements, with reports coming in that negotiations have been held up by Apple’s insistence on some bottom-basement royalties.

Supposedly, Apple only wants to pay six cents per 100 songs users stream. That’s just half of the twelve cents Pandora pays labels, and a tiny fraction of the thirty-five cents Spotify dishes out. Even in light of this, Apple doesn’t want to pay a competitive rate, and has been aiming to get special treatment.

The problem may be that the labels know just what kind of ridiculous cash reserves Apple is sitting on, so not only do they think that Apple is more than able to pay the same as everyone else, but they fear that bending to its demands could cause other companies to insist upon the same underpriced rates. For now, that leaves the ETA of an Apple streaming radio service an open ended question.

Source: NY Post
Via: BGR

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About The Author
Stephen Schenck
Stephen has been writing about electronics since 2008, which only serves to frustrate him that he waited so long to combine his love of gadgets and his degree in writing. In his spare time, he collects console and arcade game hardware, is a motorcycle enthusiast, and enjoys trapping blue crabs. Stephen's first mobile device was a 624 MHz Dell Axim X30, which he's convinced is still a viable platform. Stephen longs for a market where phones are sold independently of service, and bandwidth is cheap and plentiful; he's not holding his breath. In the meantime, he devours smartphone news and tries to sort out the juicy bits Read more about Stephen Schenck!