The rumored Apple iRadio seems to be finally taking shape as the company is reportedly close to striking an agreement with Universal Music while negotiations with Warner Music are nearing completion.
Apple is believed to be in the final stages of inking its first internet radio licensing agreement with a major record label perhaps as soon as next week, The Verge reports. According to the site Universal Music Group has reached the final stages of the negotiations with the tech giant and Warner Music is close behind.
The deal in question will require Apple to agree to the record labels' royalty demands and will offer rates on a par with music streaming giant Pandora. Per-track royalties were rumored to be the previous roadblock with Apple clinging to its offer of about 6 cents per 100 songs streamed, which is just half of what Pandora currently pays.
"Apple is expected to launch a web radio service similar to Pandora's later this year, provided that executives there can strike an agreement with Sony Music Entertainment as well as music publishers. Talks with Sony, which operates the third label, Sony Music Entertainment and Sony / ATV, the music publishing company jointly run with the estate of the late singer Michael Jackson, are said to not be as far along towards reaching a deal," The Verge writes.
The goal of the Apple music service, unofficially dubbed iRadio, is to help iTunes users discover new music and boost sales of downloads as well as generate ad revenue.
