Apple, the iPhone, iPod and iPad giant has big dreams. It is entitled to have some dreams and one such dream that was believed to be lost has recently emerged on the surface. Apple dreamt of owning its own radio service and for a long time it was felt that it would remain a dream. However recently, it is in the pipeline that Apple wants it iRadio service very badly. As the famed Worldwide Developer Conference seems to be nearing, Apple is frantically trying to make iRadio a reality.
A Better Deal
On Sunday according to sources Apple struck a deal with Warner Music Group for the launch of Apple’s free internet radio. Apple has been trying to secure a deal with Universal Music to license music last month and it seems finalized. The only hiccup was Sony and talks are still underway between the two companies to iron our one kink or the other. It is believed that with this deal publishers and music labels are better off as compared to what they receive from Pandora. Pandora is a rival app which has gained quite some popularity and iRadio will be in direct competition with this internet radio app. Apple in its initial deal talks claimed that it would pay a per stream rate which was higher than what Pandora is paying. That all changed but it is still considered that Apple will end up paying more.
With Apples size and consumer base this is still a lucrative deal. Plus considering the fact that Apple plans to get global with this service, things would be much better for everyone on board. Music labels on the other hand benefit more from this situation as Apple has promised them to provide more or similar services as Pandora free audio service and also its ad revenue generation model would mean more income for the labels.
It could rain money.
iRadio would be another app which will be hosted by Apple’s native app, iTunes. The internet radio app will be available for mobile devices and would host certain features not found on the rival service, Pandora. These include the ability to rewind a song from the middle. Quite a notable feature and in demand these days, this could be a key feature which could rake in a lot of views. Also a button would allow directly to purchase the song in-app without leaving the application. This would mean more in sales. iTunes clearly has an upper hand which boasts around 500 million accounts compared to a meager 70 million active Pandora users. Pandora could see tough competition emerging from Apple which could threaten to diminish or stunt its active user base.
The publishers look happy with the deal too, the publishing arm of Warner Music Group, Warner Chappell, seems satisfied with the deal it struck with Apple. It will enable the publishers to take home more than twice the revenue share generated from ads than it currently receives from Pandora. This could solely be attributed to the fact that Apple has sheer star power and appeal and with such a huge consumer base, one could wonder if things went sour.
Google in the game
The arena is getting saturated and highly competitive. Google, at its last months developer conference announced a subscription music service labelled Google All – Access. It is more a spotify look alike. News is that Google is working on a music service which centers around YouTube.