Report: Apple Signs Deal with Warner Music Group for "iRadio"
June 2, 2013 11:01 PM
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iRadio is expected to make an appearance at WWDC next week
Apple had a busy weekend locking in a promising music deal for its upcoming
Internet radio service
-- which is due to make an appearance at Apple's Worldwide Developers Conference (WWDC) this month.
Apple successfully signed a deal over the weekend with Warner Music Group and its publishing arm, Warner/Chappell Music, for recorded music rights and music publishing rights.
About a month ago, it signed another deal with Universal Music Group for its recorded music rights.
Apple's Internet radio service -- which is expected to be named "iRadio" and compete with the likes of Pandora -- will reportedly be free and depend on advertising for revenue. IOS users will be able to use their iPhones, iPads and iPods to stream music based on user preferences.
The Wall Street Journal
would differ from Pandora in that users could play or skip songs as much as they'd like (Pandora limits how many times a song can be played or skipped).
Apple has been negotiating deals with record labels directly in order to receive better licensing terms. Negotiations with these groups were delayed for months because they wanted higher rates from Apple. According to
The New York Times
, record labels ask for about 4 percent of Pandora's revenue, but wanted at least 10 percent of Apple's.
However, Apple managed to strike a deal with Warner Music Group for an undisclosed rate. Apple is also trying to sign deals with Sony Music Entertainment and its publishing arm, Sony/ATV.
Apple will reportedly unveil iRadio at WWDC, which takes place June 10-14 in San Francisco.
The New York Times
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RE: total non starter
6/3/2013 11:04:42 AM
If they can make a free IRS with unlimited skipping with less commercials, they will probably gain a lot more customers and retain more repeat buyers(loyalty) to their products.
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