Apple wanted to have a music streaming service built into the iPhone 5 but had to abandon the plan after licensing talks with Sony/ATV broke down last minute.
Sony/ATV and Apple couldn’t agree on a per-song rights fee for the proposed streaming service, according to New York Post sources close to the situation.
Sony/ATV recently acquired EMI Music Publishing, with assets include a catalogue of over 1.3 million music copyrights spanning a multitude all genres across the globe making up the deal.
The Post’s source said that talks between Martin Bandier and Apple software and services boss Eddy Cue had been moving ahead before suddenly breaking down.
Rather than negotiate rights with ASCAP and BMI (music rights groups which have the power to negotiate blanket deals on behalf of all members), Apple had to strike deals on an individual basis because it was planning “a souped-up streaming servce”, according to The Post.
Subsequent Apple streaming rumours surfaced earlier this month pitching the service along the same lines as internet radio service Pandora.
Sources have suggested that an Apple streaming services could still emerge in an iPhone update in future months.