Reports indicate that Apple is preparing to launch a streaming music service. Tentatively called “iRadio,” Apple is working out deals with all three major record labels to launch on June 10th. An official announcement is expected at Apple’s annual WWDC conference in San Francisco next week.
PC Mag reports that Warner Music Group signed a deal on Sunday (June 2nd) that would give them a ten percent advertising revenue share. Previous reports indicate that a deal has been struck with Universal Music Group, while Sony remains absent, for now.
Rumors have been circulating for over a year that Apple was launching a streaming service. Some claim part of the delay has been over royalties the labels would receive from Apple. Initially, Apple offered labels a royalty rate of six cents per 100 tracks streamed which is much lower than competitor rates. New reports speculate Apple raised their offer to 12.5 cents which is a similar rate paid by Pandora, Rhapsody and Spotify. However, it has not been confirmed if the labels have accepted this offer or not.
It’s obvious labels would benefit even more from Apple by signing on to their streaming service. After all, they revived the music industry with its iTunes and iPod after Napster and online piracy sent the industry into a sharp decline more than ten years ago.
If you can’t attend Apple’s WWDC conference, follow along with their official app to see if they announce “iRadio.”
Author: Buddy Iahn
Buddy Iahn founded The Music Universe when he decided to juxtapose his love of web design and music. As a lifelong drummer, he decided to take a hiatus from playing music to report it. The website began as a fun project in 2013 to one of the top independent news sites.