iRadio Deal Reached Between Warner and Apple: Does This Mean WWDC Will Be Launched Soon?

Sara Cunningham June 4, 2013 0


Is Apple finally making a move towards launching its internet streaming service? After several reports and many speculations, Apple has reached its desired deal with Warner Music Group. This is the third big music label signed by this company in order to bring its new project iRadio on the top right from its beginning. According to some sources, Sony might be the next music label which Apple targets for signing.

We were able to find out from some sources that Apple has made this deal with both Warner Music Group and Warner Chappell and brought itself one step closer to this iRadio launch. Right after this, some speculations have floated around saying that we will finally see this product out in the market at the annual WWDC, scheduled to start June 10. From this deal, the publishers will receive twice as much revenue from what they are currently getting from Pandora.

As always, Apple hasn’t commented on this situation. Apple has already reached an agreement with Universal Music, which is a big step towards making deals with other music labels. However, agreements with Sony are still in the works. This is partly due to the fact that the two companies are unable to reach an agreement about what features should be included in the product.

Apple has used a really good strategy to attract the music labels into signing with them. First, they have offered to pay per-stream rate half of what they are getting from Pandora. As it seems, this didn’t go very well, and Apple now pays as much as Pandora or according to some sources, maybe even more. The magic happened when Apple has announced that this iRadio service will be launched globally, and this Music Labels heard only two words: More Money!

imagesWith the launch of this service in many countries around the world, Apple and the labels will definitely get more revenue numbers and not only from the payment, but from the ads, too. Apple has agreed to build the whole ad business which means including audio ads that are currently heard on other Internet music streaming services.

Rumors say that this service will be closely attached to iTunes, and it will be available for mobile devices. It will have all the standards features that every service has and some other which the rest of them don’t have. It’s expected the new features to be rewinding a song from the middle or from the end of it, a feature that will easily allow you to buy some songs from iTunes. This second feature will help the music labels increase their revenue because it’s already known that from iTunes all the labels receive 70% per dollar of a purchased song.

Having all this in mind, we can conclude that this iRadio streaming platform will gain big popularity from the start because iTunes has nearly 500 million users. These users are potential subscribers to this iRadio streaming service too, and from what I can see, the future for Apple seems very interesting.

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