Apple’s iRadio: Will it be Better than Pandora

Jasmina Lozevska April 6, 2013 0
Apple’s iRadio: Will it be Better than Pandora

Remember when we said that Apple’s iRadio will be out this year? – Well, they are on the edge of making that rumor true. They are close to concluding a streaming deal with two major big music labels which can be better for the whole music industry and they can get more from this than from Pandora. This was said by two people who are close to the negotiation sides.

Apple has been really busy lately and worked really hard for getting the most of these music labels, to put them on the right terms and completing the deal for Apple to play the labels for half of what Pandora’s paying per-stream rate. And according to them Apple will offer some new revenue streams like addition to their iRadio. This will include much quicker way of buying songs, boosting more download sales from Apple’s iTunes, and fair share of all the new audio ads which are rumored to be included from Apple. As we mentioned in the other article about iRadio, it will be completely synchronized with iTunes and it will be available on all Mobile devices.

According to some rumors, Apple is about to sign a deal with Warner and Universal music group somewhere in next week. But besides this, the people close to this situation said that the contracts are not made yet and they can still fall apart. Apple is not over making deals just with these music labels, they still need to make a deal with Sony Music Group and with the music publishers. According to the sources Apple is forcing the labels to sign the deals by summer so they can launch this iRadio then, because they are hoping for quick release for this service in several territories like France, US, Germany, Japan, Australia and UK.


This service has it’s similarities with Pandora just because it doesn’t support listening on demand. But as we all know, Apple wants to be unique and they are setting some unique features and designs. With this, Apple will be faced with growing competition. Pandora, Spotify and RDIO are already here and it’s been announced that they will upgrade their streaming services with paid and free plans. Apple’s biggest rival, Google, is planning to launch their own service from this kind which will be part of YouTube.

This might be a gamble for the music labels, but all the labels are confident that iRadio will grow fast and will gain the proper traction from the costumers. Maybe this is because of the dominant iTunes and Apple’s easy-to-use service which will be surely enabled on their smartphone and the guarantee that the labels will profit from every played stream, really attracts their attention away from Pandora.

These same sources have said that the labels and the Cupertino Company are still negotiating the revenue share which will come from the ads and they added that the labels are forcing more generous terms from 35% to 45%. According to some reports Apple has been very busy working on streaming music for years and this Cupertino Company owns 2/3 of the music market which is adding that extra flavor to this new service. Apple has some kind of Internet music streaming included in iTunes just for desktops and TV devices but it’s not included in iOS. This future iRadio stands for this Internet streaming solution and it will include Internet stations which will be maintained by some third party labels. The feature for recording everything you hear will be disabled.

As it seems the future for this iRadio service is very bright, but the subscribers will have the last word. In my opinion, this is giant leap forward for the music industry same as like iTunes was back in the day.

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