Apple late in delivering their Internet Radio service
March 08th, 2013 - 04:36 pm ET by Mathieu M.
It was expected to be released with iTunes 11, but the Internet Radio service promised by Apple is still not available. Apple puts the delay down to issues with different music licenses.
According to sources quoted by Bloomberg and the New York Times, Apple’s radio streaming service won’t be available for a few months yet.
The reason for the delay is directly linked to ongoing negotiations for broadcasting rights with Sony/ATV. Sony isn’t going to just hand over their licenses without maintaining a large amount of control, while also getting their share of this market.
It would also appear that negotiations between the two companies are rather tense, due to the high increase in royalties over the last few years (Pandora has changed their limited duration subscription due to an increase of more than 25% of royalty payments to copyright holders).
Bloomberg believes that Apple could still open their service in the first quarter of 2013, leaving them a month to sign all of the required agreements and to launch the platform.
We currently don’t know a lot about what the service will look like, besides the fact that it will be more of a competitor to Pandora than Spotify as its revenue will be mostly derived from advertising, rather than subscriptions.
Besides this, it appears that Apple is also in negotiations with Beats for the development of a music streaming service (Daisy) which would directly compete with services like Spotify and Deezer.