Apple’s iRadio service is slowly taking shape now that sources, though unconfirmed, claim the Cupertino company is on the verge of signing a deal with Warner Music and Universal Music Group. However, nothing has been set in stone as yet and it still runs the risk of falling through. Apple is reported to be eager to start the service this summer.
As has already been mentioned before, the ultra low fees that Apple is willing to pay is what is delaying the process. Apple is making attempts to sugar coat its offering by a share of the new audio ads that Apple plans to include in the free streaming service. The ease of downloading a particular song is what Apple believes will boost demand so that users eventually will end up buying more songs. The service will be a lot like Pandor, as there will be no such thing as on-demand listening. However, Apple plans to include some unique features, such as the ability to switch back to the beginning of the song and so on.
However, the music companies still aren’t sure as to how things are likely to work out for them. This since they have no idea how the audio ad business that Apple is holding as bait will pan out in the long run. They are also demanding a substantial share of the ad revenue, something to the tune of 35 – 45 percent to make up for the low rates Apple is offering for them, which is just a fraction of what Pandora currently offers.
Apple though has stated it intends to launch the service in at least a dozen countries in Europe along with Japan and of course the US to begin with, before launching elsewhere in the world.