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Music Labels Downplay Imminent Launch of New Apple Music Service

In September, The Wall Street Journal reported that Apple was in licensing negotiations with record labels to create a Pandora-like music service. The next day, the New York Post reported that talks were hung up over licensing fees.

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Earlier today, it was Bloomberg breaking the story. The wire service reported the music service would launch in the first quarter of next year, and, just like last time, anonymous record company executives are pouring water on the deal, saying record companies still want Apple to improve its offer. This time, CNET has the story:
The negotiations are ongoing so the terms could change, but the sources said Apple has offered to pay a lower royalty rate than Pandora pays even though it wants to provide iTunes users with the ability to do more with the music than Pandora's customers enjoy. Pandora, the leading Internet radio service, pays a statutory rate set by Congress. Under the terms of this rate, Pandora must limit the way users interact with songs, such as capping the number of times they can listen to the same song or an individual artist.

In exchange for this greater flexibility with songs, Apple is offering a percentage of the ad sales generated by the service. CNET's sources say that some of the sector's leaders don't believe the cut Apple put on the table is big enough. Others in the music industry, however, argue it's good for the overall business if Apple takes on Pandora.
It seems likely that these negotiations are playing themselves out in the press, as well as behind boardroom doors.

Top Rated Comments

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24 months ago
Bring out iTunes 11 already!!
Rating: 15 Votes
24 months ago
maybe fix the itunes match im paying for, first...
Rating: 10 Votes
24 months ago
All these "Itunes 11!" people are starting to sound like the "We want new iMac news!" people of last week.
Rating: 8 Votes
24 months ago
meh.
I like Pandora.
Rating: 6 Votes
24 months ago
On MANY threads, the repititious question "where is iTunes 11" is repeated ad nauseam.

I appreciate that many are very interested in iTunes 11, but continually asking the question will not hasten the appearance of the software upgrade.

Folks, it will come when it comes...
Rating: 6 Votes
24 months ago
Move on Apple... This will be another PING cr@p...
Rating: 5 Votes
24 months ago

Apple you have gotta be kidding me! Where the hell is iTunes 11? I wouldn't cared so much if the "Coming in October" teaser was not there on the iTunes website.


I would feel exactly the same way except it's not the 1st of November yet so…
Rating: 5 Votes
24 months ago
Haha, I read that last line initially as "behind bedroom doors". What!?
Rating: 5 Votes
24 months ago
Apple you have gotta be kidding me! Where the hell is iTunes 11? I wouldn't cared so much if the "Coming in October" teaser was not there on the iTunes website.
Rating: 4 Votes
24 months ago
Genius Radio?


And to the music industry execs, that's cool bro. Keep limiting my options, I am sure there is a torrent file somewhere...
Rating: 4 Votes

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