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    Apple still negotiating royalties for iRadio

    By Phil DzikiyMay 19, 2021 10:44 pm UTC

    Despite a report last month that Apple was close to making the deals necessary to move forward with the company’s streaming music service, a new report notes Apple is still discussing royalties. Universal Music is reportedly on board, and Warner Music is close, but Apple is still negotiating with Sony Music. Sources say Apple raised its royalty offer of 6 cents per 100 songs streamed up to 12.5 cents per 100 songs — the same rate as Pandora — but it’s unknown if Universal accepted that rate.

    Some music executives argue Apple should pay a higher rate than Pandora due to its “broader ambitions” for iRadio, including the use of prediction data from iTunes users and a seamless plan to purchase songs through iTunes. Apple is reportedly offering revenue to labels through streaming royalties and advertising, while offering a guaranteed minimum sum as a safety net in case the revenue streams disappoint. [via Financial Times]

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    Phil Dzikiy
    Phil Dzikiy
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    Phil Dzikiy was the Editor-in-Cheif at iLounge. He mostly edited and oversaw all site editorial content, managed staff and freelancers, made the final call on product review grades and awards, and led online coverage of all Apple events and live coverage of the International CES in 2015.

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