Thursday, March 7, 2013

Apple iRadio: Stingy to the Core…

Apple has opened talks with record labels about getting rights for a music-streaming service — but has gotten plenty of push back because its offer is seen as way too cheap, The Post has learned.  The tech titan, the most valuable company in the world, made an initial offer to the label of about 6 cents per 100 songs streamed, sources said. That’s about half of the 12 cents per 100 songs paid by Pandora, the leading online radio service that Apple is taking aim at, sources told the NY Post.

“Apple wants a rate that is lower than Pandora’s,” said one high-level executive.
Cash-rich Apple’s attempt to start a music-streaming service, featuring artists like Justin Bieber (above), has run into turbulence after it offered record labels just one-half the price Pandora is paying.

While the labels would admit Apple’s music service could tap a whole new revenue stream for them, they are loath to say yes to the offer as the industry is fighting on Capitol Hill to prevent Pandora from lowering its current rate, sources added…

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