“Apple is close to striking a streaming deal with two of the major music labels that could end up far sweeter for the music industry than what the labels currently get from Pandora, according to two people familiar with the negotiations,” Paul Sloan reports for CNET. “Much has been made in recent weeks of Apple trying to squeeze the labels on terms, and the deals do have Apple paying the labels a per-stream rate that’s half of what Pandora pays. But CNET has learned that Apple’s planned music service would offer new revenue streams as well.”
“That includes a quick way for consumers to buy a song they hear, potentially boosting download sales from iTunes, as well as a revenue share of new audio ads Apple is planning to add to the free service, according to sources,” Sloan reports. “The product would be tied to iTunes, and available on mobile devices.”
Sloan reports, “Apple could sign deals with both Warner Music and Universal Music Group within the next week, according to the sources… Apple has told the labels it’s determined to get all its deals signed in time for a summer rollout. In addition to the U.S., Apple is hoping to quickly unveil the service in up to a dozen territories, according to sources, including the U.K, France, Germany, Australia, and Japan… The service, according to sources, most closely resembles Pandora because it doesn’t offer on-demand listening. Apple is building some unique features, such as the ability to jump back to the beginning of a song, according to one person briefed on the company’s plans.”
Read more in the full article here.
[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]