Negotiations between Sony/ATV, the world’s largest music publisher, and Apple regarding a music-streaming service native to iOS, has reportedly hit a last-minute snag, delaying Cupertino giant’s plans to launch its own radio service to rival Pandora, according to an exclusive report by New York Post.
It appears that Apple couldn’t agree on a per-song rights fee that it will need to pay for each song streamed by its customers. Instead, Apple is looking for better licensing rates than Pandora because it will direct record sales through its iTunes Store. This could also be a reason why Apple lacks recorded music rights from the labels.
Apple’s plan to have its own music-streaming service built into the iPhone 5 was dramatically dashed when talks between the tech giant and Sony/ATV hit a last-minute snag, The Post has learned.
Sony/ATV, the world’s largest music publisher, and Apple couldn’t agree on a per-song rights fee, sources close to the situation said.
Those rights are usually tenths of a penny per stream, sources said. Sony/ATV was looking for a higher rate.
Apple has declined to comment on its proposed streaming service, adds the report.