iRadio will give users the opportunity to stream songs via the iTunes store, as well as a feature that predicts what music they might want to listen to based on their iTunes habits but according to The Financial Times, Sony won’t sign on the dotted line as they are holding out for a better deal.
Originally Sony were offered the label a royalty of 6.5 cents for every 100 tracks streamed, they later raised this to 12.5 cents to match the amount paid by internet radio service Pandora.
Apple are offering all labels three revenue streams, royalty per track streamed, a share of the iRadio advertising revenue and a guaranteed minimum payment (just in case iRadio isn’t as successful as iTunes).
According the the FT Sony are still holding out because Apple have “broader ambitions for iRadio” and a “larger user base than Pandora”.
With iTunes having over 400 million users on it makes sense that the label wants to acquire the best deal possible, especially after it’s been reported that some labels didn’t get a fair deal with iTunes the first time around.
With iRadio predicted to launch at WWDC this July and Google hot on it’s heels with it’s expected music streaming service reportedly launching this Summer, will apple give Sony a better deal just to keep on schedule?