Apple Inks Deal with Warner Music Group for iRadio, Likely to Debut at WWDC – Report

By: Ali Raza  |   June 3rd, 2013   |   Apple, News

Two well reputed newspapers, The New York Times and the Wall Street Journal, have reported that Apple has finally inked a music deal for its purported ‘iRadio’ service that is likely to be launched at the World Wide Developers’ Conference (WWDC). According to The New York Times, Apple is trying its best to reach an agreement with music companies so it can launch its much anticipated free ad-supported radio service during the developers’ conference taking place next week. So far deals have been stalled due to disagreements over minimum payments and royalty rates. Here is an extract from the original report of NYT:

 

“While it is still at odds with some music companies over deal terms, Apple is said to be eager to get the licenses in time to unveil the service — nicknamed iRadio by the technology press — at its annual developers conference, which begins June 10 in San Francisco.”

 

The NYT has also revealed in the report that Apple has inked a deal with Warner Music Group during this weekend, which will give tech company music publishing and music rights. On the other hand, Apple is also having discussions with Sony Music Entertainment and its publishing department Sony/ATV.

 

The Wall Street Journal has also reported about the similar deal in a separate report, which also suggests that Apple and Warner Music Group have reached a deal: “On Sunday, Apple inked a licensing deal with Warner Music Group for the rights to its recorded music and music publishing, agreeing to terms on the publishing side that other major music publishers have been seeking, according to people familiar with the matter.”

 

As a result of this deal, Apple will be paying Warner Music Group 10 percent of ad revenue that is more than double what another music streaming service Pandora is paying to its music publishers. Again, “Apple has indicated to people involved in the negotiations that the service could be announced at its annual developer’s conference, which begins June 10 in San Francisco.”

 

Shedding light on the stalled negotiations the WSJ has said that minimum payments, royalty rates to labels and other issues are behind the delays. Quoting its sources, WSJ also divulged that Apple has also signed a deal with Universal Music Group that will give it recorded music rights only and not publishing rights. The report also indicated that Apple has yet to close a deal with Sony/ATV. Apple has a short span of time before the start of WWDC, which will tip off from June 10th.

 

Source: iPhoneinCanada