Apple’s long rumoured music-streaming service is said to have hit a stumbling block after record labels are refusing its offer of low royalty rates.
The tech giant is reportedly negotiating with labels but offering about six cents per 100 songs streamed – around half of the 12 cents per 100 songs paid by online radio service – and potential rival – Pandora.
While Apple’s music service could tap a whole new revenue stream for labels, accepting the offer could mean Pandora lowers its current rate too – something the industry has fought to avoid.
An Apple iRadio product would be ad supported and the music labels want an upfront fee and a percentage of that ad revenue in addition to the streaming fees, said sources.
Source: New York Post