The Apple streaming radio service has been rumored since September, and it could harm Pandora, Spotify, and other similar offerings because the service would be easily accessible on the many millions of iPhones, iPads, and iPod touches around the world. Apple’s iTunes store is already the number one place to buy digital music in the world, so this new service would act as an extension to that.
The New York Post reports that Apple made an opening offer to pay “6 cents per 100 songs streamed,” which is half of what Pandora pays for its songs. Clearly the music industry didn’t like the fact that Apple — which is sitting on about $137 billion in cash — was trying to be cheap.
“Apple wants a rate that is lower than Pandora’s,” an unnamed “high-level executive” told the Post.
Apple very well could bundle the service with iTunes Match, which costs $25 a year and makes it possible to stream your personal song catalog across iOS devices, Macs, and PCs.
Reports also suggest that Apple originally wanted to launch the streaming service along with the iPhone 5 last September, but it couldn’t get its agreements in order.
Apple with headphones concept via Daniel Gilbey Photography/Shutterstock
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