Latest in Iheartradio

Image credit:

Record labels laugh at Apple's proposed royalty rate for streaming service

Share
Tweet
Share

Sponsored Links

The New York Post has an exclusive today about Apple's attempts to get rights from record labels for a proposed music streaming service, which are apparently falling on deaf ears because its offer is "seen as way too cheap."

A high-level executive at one label told the Post that "Apple wants a rate that is lower than Pandora's," and the numbers don't lie. Pandora currently pays a royalty of US$0.12 per 100 songs streamed; Apple's initial offer was about 6 cents per 100 songs streamed.

Spotify currently pays the highest royalty rates at about 35 cents per 100 songs streamed, and the Post notes that music label insiders think that Apple should pay at least 21 cents per 100 songs. That's the rate set by the Copyright Royalty Board for companies that don't own broadcast operations.

The Apple streaming service, which is rumored to be named iRadio, is expected to be ad-supported and was widely expected to be available at the launch of the iPhone 5 last fall. A source for the Post said, "Everyone's had their initial meetings and everyone is preparing counters." Hopefully Apple will be able to iron out the details before the next iPhone is ready to roll.

[via MacRumors]

All products recommended by Engadget are selected by our editorial team, independent of our parent company. Some of our stories include affiliate links. If you buy something through one of these links, we may earn an affiliate commission.
Comment
Comments
Share
Tweet
Share

Popular on Engadget

Xbox One gets another simplified dashboard redesign

Xbox One gets another simplified dashboard redesign

View
Samsung's new chips usher in smartphones with 16GB of DRAM

Samsung's new chips usher in smartphones with 16GB of DRAM

View
Lenovo ThinkPad refresh offers 10th-gen Intel CPUs and AMD's Ryzen 4000 Pro

Lenovo ThinkPad refresh offers 10th-gen Intel CPUs and AMD's Ryzen 4000 Pro

View
Ultimate Ears' Hyperboom speaker is a portable party powerhouse

Ultimate Ears' Hyperboom speaker is a portable party powerhouse

View
What's on TV this week: 'Knives Out' and 'Altered Carbon'

What's on TV this week: 'Knives Out' and 'Altered Carbon'

View

From around the web

Page 1Page 1ear iconeye iconFill 23text filevr