Apple Continues to Prep for iRadio Launch Next Week, Signs Sony Publishing

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itunes_radio_round_iconFollowing earlier news that Apple has reached an agreement with Sony Music for its upcoming streaming music service dubbed "iRadio," Billboard reports (via AllThingsD) that Apple has also inked a deal with Sony/ATV Music Publishing.

In addition to signing with labels, Apple also needs to reach deals with publishers. The company has now completed agreements with both the label and publishing branches of Sony and Warner, in addition to signing a deal with Universal Music. Apple has yet to reach an agreement with Universal Music Publishing Group, however.

According to Billboard, Apple has agreed to pay publishers a 10% cut of advertising revenue.

The majors publishers had looked like they were going to be the holdout because Apple initially offered to pay them a rate of 4.1% of its advertising revenue, while the publishers had been withdrawing digital rights from the U.S. performance rights organizations BMI and ASCAP because they wanted higher rates. BMG, Sony/ATV, UMPG and Warner/Chappell executives had privately said they were seeking rates of 10%–15% of iRadio's advertising revenue. But when Apple agreed to a 10% rate, Warner/Chappell last week signed the deal and now so has Sony/ATV.

With Universal Music Group chairman and CEO Lucien Grainge on board with the planned Apple service, its likely that UMPG's deal could be announced shortly, too.

Apple's iRadio service is expected to be announced at WWDC next week, with a launch later this year. Recent rumors have suggested that Apple is planning to offer the service for free, using revenue generated by ads to support the program.

Top Rated Comments

Klae17 Avatar
99 months ago

If a service

1: makes me listen to ads

Or

2: puts up obstacles that stop me from listening to what I want

Then I'm not interested.

Spotify has everything I need


Then stick with spotify.
Score: 3 Votes (Like | Disagree)
bassfingers Avatar
99 months ago
If a service

1: makes me listen to ads

Or

2: puts up obstacles that stop me from listening to what I want

Then I'm not interested.

Spotify has everything I need
Score: 2 Votes (Like | Disagree)
Compile 'em all Avatar
99 months ago
Can't wait. Not a fan of Spotify and it would be great to have something built into iTunes.
Score: 2 Votes (Like | Disagree)
mickcordero Avatar
99 months ago
Dont get it. Whats the deal with radio, when I can listen to what I want when I want with services like Spotify? Or am I missing something?
Score: 1 Votes (Like | Disagree)
xtwentyseven Avatar
99 months ago
Sounds more like Pandora than Spotify. I think they should offer a Spotify type program for $10/month, then allow you to purchase $10 worth of iTunes music for each month you pay for. It would stimulate people to purchase music again, while not paying more than they do for Spotify. Listen to as much as you want, keep the amount you paid for. The labels get their typical iTunes cut of the sales and Apple wins when someone lets a month go by without downloading their $10 worth, plus people will likely go a little over $10 on some months, which can be charged to their iTunes account in addition to the $10. Or even $15/month and let you download $10 worth still.
Score: 1 Votes (Like | Disagree)
TMar Avatar
99 months ago
/yawn. Radio was so 40 years. Streaming radio was so 10 years ago. Bored!
Score: 1 Votes (Like | Disagree)

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