“Apple Inc. is inching closer to a new streaming music service for iTunes, according to people familiar with the matter,” Hannah Karp reports fo The Wall Street Journal.
“On Sunday, Apple inked a licensing deal with Warner Music Group for the rights to its recorded music and music publishing, agreeing to terms on the publishing side that other major music publishers have been seeking, according to people familiar with the matter,” Karp reports. “Under the deal, Apple will give Warner Music Group’s publishing arm 10% of ad revenue – – more than twice what Internet radio giant Pandora Media Inc. – pays major music publishers. Warner’s terms with Apple could pave the way for other major publishing deals to follow. Apple has signed a deal with Universal Music Group for its recorded music rights but not its publishing rights, while Apple remains far apart on negotiations with both Sony Music Entertainment and Sony’s separate publishing arm, Sony/ATV, according to people familiar with the matter. Apple is unlikely to launch the product without striking these deals.”
Karp reports, “People familiar with the matter have said Apple’s service would allow users to stream songs and be integrated with Apple iAd service, which allows developers to show ads within their apps.”
Read more in the full article here.