Earlier this month we told you that Apple was working on a streaming music service to rival Pandora. Apple was reported to be negotiating with record labels, but was months away from launching the service. Today reports say that Sony is becoming a stumbling block to the launch of the service.
Today, the New York Post reports that negotiations with music publisher Sony/ATV have hit a snag over the fee Apple would pay for each song streamed by its customers.
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.
It seems Sony/ATV, who is the world’s largest music publisher, and Apple can’t agree on a per-song rights fee. Sources close to the situation report that Sony/ATV is looking for a higher rate than the usual tenths of a penny per stream.
The Post is reporting that Apple wants better licensing rates than Pandora gets because it will also be directing record sales through the App Store. Apple’s restrictions on playing an artist multiple times would be looser than Pandora’s.
Most of the record labels are on board with Apple’s plan. Most realize Apple is going to do what it pleases anyway, and besides, the company will be using the streaming service to promote sales.
The music publishers are reported to be still ticked off about what they consider was Apple trying to by-pass them in initial negotiations to include 90-second song samples back in 2010. Steve Jobs had been preparing to announce extended song samples at an Apple event, but the publishers stepped in and threatened legal action if Apple didn’t renegotiate their fees.
Of course, the publishers, (we’re looking at you Sony/ATV), could just shoot themselves in the foot like they usually do, and not close a deal with Apple. Then all Apple has to do is pay the statutory rate, the same amount Pandora pays. I just have two words to say to the record companies. “C, D”.
Sources say the talks are to continue…
