Report: Apple's Upcoming iRadio Music Service Has Hit a Snag

By Casey Chan on at

We've heard that Apple was supposedly close to locking down two major music labels for its 'iRadio' streaming music service and that Cupertino was waiting on Sony to finish off the trifecta. Unfortunately, Apple is still waiting on Sony. The Financial Times reports that Sony is holding firm because it wants Apple to pay more than other streamers do.

According to the FT, Sony's reasoning is that Apple should pay more because of its "broader ambitions for iRadio" when compared to the likes of Pandora or Last.fm. I'm guessing, Sony wants to get a better deal just in clase iRadio becomes the next iTunes. Apple is offering music labels a royalty per song streamed, a share of iRadio's ad revenue, and a guaranteed minimum sum (just in case iRadio doesn't take off).

Apparently, Apple first offered 4p for every 100 tracks streamed but has raised that offer to 8p for every 100 tracks. That's what Pandora's rate is set at in the US. And until Apple and Sony figure out how many pennies they're both willing to give each other, it looks like iRadio needs some more marinating before it's ready. [Financial Times via Verge]