An Apple web radio service, set to rival the likes of market-leader Pandora, is reportedly in negotiations with the big labels but some sources have revealed that they are not happy with the current package Apple is offering.
The radio service, set to launch in early 2013, will be an ad-supported, app-based platform. Apple is looking to get ahead of Pandora by applying for earlier access to new music.
The sources revealed that Apple offered a lower royalty rate than Pandora, although it benefits from less restrictions in relation to further user interaction with the music played – something that is a hindrance to Pandora due to the terms of its license which includes capping the number of listens of the same material.
Analyst Rich Greenfield of BTIG LLC on Apple’s launch into the market: “If Apple offers a radio product, it will be far superior to anything else on the market.
“They’re seeking direct licenses to avoid all the restrictions that come with a compulsory license.”