Report: Apple Negotiating With Labels For Streaming Service
March 7, 2013

Apple has reportedly begun negotiations with the major labels for licensing rights for its potential music streaming service. However, according to The New York Post, Apple has received early resistance on the label side, as its initial offer is seen as too low.

Sources tell the Post that Apple is offering roughly six cents-per-100 streamed songs, which is almost half of what Pandora pays out in its rate of 12 cents-per-100 songs. One anonymous executive told the paper that "Apple wants a rate that is lower than Pandora's."

The Post notes that while the labels are eager for a new revenue stream via Apple, they don't want to accept a lower offer as Pandora leads a fight in Washington to lower its own royalty rates. The paper's sources suggest Apple should pay at least 21 cents-per-100 songs, a rate set by the Copyright Royalty Board for companies that don't own broadcasters. Services such as Clear Channel's iHeartRadio pay out roughly 22 cents-per-100 streamed songs. The Post says that Spotify pays the highest rate, at 35 cents-per-100 songs.

As reported yesterday, Google is moving closer to launching two new digital music services, and Warner Music Group has reportedly already signed a licensing deal for them. Meanwhile, it was also reported yesterday that Apple CEO Tim Cook recently met with Jimmy Iovine to discuss his upcoming streaming service from Beats.




 
Breaking News
Louie Diaz Named PD At KLIF/Dallas
In Brief - August 29, 2014
The Week In Review: 8/24-8/29
August 28, 2014
NuVoodoo Releases Social Media Findings Of Ratings Prospect Study
T-Mobile's Music Freedom Expands With Six New Music Streaming Services
In Brief - August 28, 2014
August 27, 2014
STRATA Survey: Ad Agencies’ Interest In Digital Video Jumps 45% From A Year Ago
In Brief - August 27, 2014
August 26, 2014
Scott Carter Promoted To SVP/Marketing At Epic Records
CCM+E Nashville Debuts ALT 98.3
CBS Radio, Townsquare Media Partner To Create The Michigan News Newtwork
Stacey Thomas Appointed Director, Media Integration For CCM+E Philadelphia
In Brief - August 26, 2014
August 25, 2014
Lance Houston Named New PD Of Boston's 101.7 The Bull
In Brief - August 25, 2014
August 22, 2014
eQB NOW
The Week In Review: 8/18-8/22
Chris Edge Adds PD Duties At WDCG/Raleigh
SoundExchange Q2 Digital Radio Report Highlights Digital Radio Transformation
In Brief - August 22, 2014
August 21, 2014
NuVoodoo Ratings Prospect Study Reveals Broadcast Radio Beats Pandora For Music Satisfaction
CBS Radio Adds To Sports Programming Leadership Team
iHeartRadio Survey: Carrie Underwood Music’s Best Female Role Model
In Brief - August 21, 2014
Music News
Bicoastal Made In America Festival A Success
MTV VMAs Spike Sales For Beyoncé and More
Quick Hits: Bruce Springsteen, John Legend, Shakira
The Week In Review: 8/24-8/29
Quick Hits: Chris Brown, Weezer, Miley Cyrus, Brandon Flowers, Paul McCartney, Bob Dylan
Wiz Khalifa Earns First #1 Album, Taylor Swift Debuts At #1 With New Single
Quick Hits: Ariana Grande, Kings of Leon, Lady Gaga, Neil Young
Usher Slowly Revealing Tour Plans
Quick Hits: Bad Boy Records, Ty Dolla $ign, Gerard Way, Bob Dylan
Beyoncé, Miley Cyrus Rule 2014 MTV VMAs
Slipknot Unmasks Details of The Gray Chapter
Quick Hits: Eminem & Shady Records, Ed Sheeran, Prince, Grouplove, Cobra Starship
Quick Hits: Jessie J, Foo Fighters, Mariah Carey & Nick Cannon, Genesis, Fall Out Boy
The Week In Review: 8/18-8/22
Nickelback Signs With Republic Records
FMQB NOW

Jeff Sottolano
Director of Programming
CBS Radio

Advertisement:
Search FMQB.com
Advertisements:
FMQB Member Login
Email:
Pass:

Save
Not a member yet?
Sign up Now!
Sign Up for Breaking News!
Enter FMQB E-Tracking!