Apple (AAPL) Strikes Deal with Music Publisher as iTunes Internet Service Pushes Ahead
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Apple (Nasdaq: AAPL) is nearing the launch of an iTunes-branded Internet radio service after inking a deal with another large studio.
The WSJ noted that Apple and Warner Music Group finalized a deal for recorded music and music publishing. Under the deal, Apple will pay 10 percent of ad revs to Warner, which is twice as much as current streaming-radio giant Pandora (NYSE: P) is paying out to publishers.
An announcement about the new service could come during Apple's WWDC 2013 event, which begins on June 10th.
Apple still needs to work a deal out with Sony Music Entertainment (NYSE: SNE) and has just recorded music rights with Universal Music Group. Both need to be set in stone before Apple moves ahead with the streaming services, said the WSJ. Issues key in negotiations have been royalty rates, minimum guarantees in case of no ad sales, and timing on revenue sharing.
Into the open Monday, Apple is up about 0.5 percent.
The WSJ noted that Apple and Warner Music Group finalized a deal for recorded music and music publishing. Under the deal, Apple will pay 10 percent of ad revs to Warner, which is twice as much as current streaming-radio giant Pandora (NYSE: P) is paying out to publishers.
An announcement about the new service could come during Apple's WWDC 2013 event, which begins on June 10th.
Apple still needs to work a deal out with Sony Music Entertainment (NYSE: SNE) and has just recorded music rights with Universal Music Group. Both need to be set in stone before Apple moves ahead with the streaming services, said the WSJ. Issues key in negotiations have been royalty rates, minimum guarantees in case of no ad sales, and timing on revenue sharing.
Into the open Monday, Apple is up about 0.5 percent.
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