Apple’s long rumoured ‘iRadio’ music streaming service, which may be introduced as early as this summer, may prove to be more profitable for major music labels than Pandora. According to a CNET report, Apple is getting closer to finalizing a deal with at least two major music labels in order to bring to life its much anticipated streaming-music service, which would offer new revenue streams to music labels.
According to people familiar with the negotiations, the service would include a quick way for consumers to buy a song they hear, which would not only boost music sales from iTunes, but also increase the revenue share of new audio ads which Apple is planning to add to the free iRadio service. The report also claims that the product would be tied to the iTunes and will be available on iOS devices.
Apple could sign deals with both Warner Music and Universal Music Group within the next week, according to the sources. But both people caution that the deals have not yet been made and could still fall apart. In addition, Apple still needs to get Sony Music Group on board, as well as the music publishers.
Even so, 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.
Though the press has dubbed the service iRadio, in negotiations with the labels Apple is referring to it as its “new streaming service,” says a source.
The sources also said that the service closely resembles Pandora as it does not offer on-demand listening. At the same time, Apple is adding some unique features, including the ability to jump back to the beginning of a song.