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
WKTU/New York's KTUphoria 2017 Set To Heat Up Summer
Bender Extends Morning Show Agreement With KBKS/Seattle
KDGE/Dallas Names Leigh Ann Adam As New Morning Drive Host
March 28, 2016
BIA/Kelsey: Digital Revenues for U.S. Radio Continue to Rise
Jeff Lyons Joins Cumulus As Promotions/Marketing Director for Appleton-Oshkosh, WI
March 27, 2017
Dennis Reese Named SVP/Promotion At RCA Nashville
Cumulus Media Brings Hot AC To Savannah, GA Launches WZAT (102.1 The Sound)
In Brief - March 27, 2017
March 24, 2017
Ryan Seacrest Announces KIIS FM's Wango Tango 2017 Lineup
WMGC (105.1 The Bounce)/Detroit Adds “Big Boy” To Mornings
107.1 The BOSS/New Jersey Announce Air Talent Line-Up
March 23, 2017
iHeartRadio Surpasses 100 Million Users
Westwood One Promotes Mark Wildman to EVP/Strategic Partnerships
March 23, 2017
iHeartMedia Oklahoma City Names JJ Ryan PD For KJYO & KXXY
Entercom Names Richard J. Schmaeling EVP & CFO
Doug Gottlieb Joins FOX Sports Radio & FS1
March 21, 2017
Beasley Broadcast Group Reports 4th Quarter and Full Year 2016 Results
Chip Arledge Appointed OM For Cumulus Media Shreveport/Bossier City, LA
KXQQ/Las Vegas Names Natalia Hernandez As New Midday Personality
In Brief - March 21, 2017
March 17, 2017
Cumulus Reports Results for Fourth Quarter and Full Year 2016
Entercom Austin To Move 96.3 FM RnB To 95.9 FM
March 16, 2017
Music News
Eagles & Fleetwood Mac To Headline The Classic
Quick Hits: Rock & Roll Hall Of Fame, Harry Styles, Lana Del Ray
Drake's More Life Sets Billboard 200 Streaming Record
Quick Hits: Halsey, Snoop Dogg / 2Pac, Pitbull / Wrestlemania, Paul McCartney, Phoenix, Matchbox Twenty & Counting Crows
Quick Hits: Kendrick Lamar, Iggy Azalea, Vans Warper Tour
Quick Hits: Gorillaz, Kaaboo Festival, March Madness
Chance the Rapper, The Killers, Muse & Arcade Fire Headlining Lollapalooza
QuickHits: Ed Sheeran, Chuck Berry, The Decemberists
QuickHits: NIN, Missy Elliot, Frank Ocean, Pitbull, Enrique Iglesias, Sublime
Rock Pioneer Chuck Berry Passes Away
The Entertainment World Remembers Chuck Berry
Ed Sheeran Spends Second Week Atop Billboard 200
QuickHits: Drake, James Blunt, Spoon, Bob Dylan
Quick Hits: Coldplay. BET Experience, Weezer
Quick Hits: The Chainsmokers, Pitbull, Ohana Music Festival, Arroyo Seco Weekend, Feist
FMQB NOW

Sam Milkman, EVP
Coleman Insights

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!