How much should Apple pay Sony Music for songs that people skip?
CNET reports that Apple and Sony “iRadio” negotiations are being stymied by the song-skipping issue.
Apple wants to roll out its streaming-music service this summer. In April, CNET reported that Apple is trying to negotiate deals with two major record labels and that these deals may be more beneficial for the music industry than the ones inked with streaming-music service Pandora.
While Apple may be trying to negotiate a deal in which the company pays the record labels a per-stream rate that’s far less than what Pandora pays to stream music, CNET says that Apple’s iRadio would open up new revenue sources for record labels. For example, listeners would be able to easily purchase a song they enjoy, and record labels would get a cut of Apple’s revenue from new audio ads that company is likely to add to the free service.
Now, Apple and Sony Music can’t find common ground over the song-skipping issue. Citing sources familiar with the ongoing discussions, CNET says that Apple and the world’s second-biggest music label are trying to agree on exactly how much the software company would fork over for songs that people listen to a little bit of and then skip to the next song.
According to CNET, iRadio will look a lot like Pandora, meaning that it will have a handful of features design to give users control over the songs they like or don’t like. For instance, an iRadio listener will be able to rewind a song and skip to the next one.
CNET also reports that Apple is hoping to hammer out its agreement with Sony Music soon, as the company has already reached an agreement with Universal Music and is close to completing its deal with Warner Music Group.
Apple wants to wrap up its negotiations with record labels and launch iRadio because Google announced its own streaming music service, called “Google All Access,” on Wednesday. The search engine giant’s streaming music service will join a crowded field, including Pandora, Spotify, Last.fm, Rdio and Rhapsody.
Like many of its competitors, All Access will enable users to stream millions of songs, put together personalized radio stations and find out about new music based on their music preferences.
Chris Yerga, Android’s engineering director, told the audience at Google’s annual I/O conference that “this is radio without rules.”
With Apple ready to join the party, one wonders who will walk through the door next.
How much should Apple pay Sony Music for songs that people skip? Do you skip songs when listening to a streaming music service? How often do you skip songs? Share your thoughts in the comments section.
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