Apple will soon give Pandora a run for its money, if the company succeeds in striking a deal with a number of music labels. According to rumors, Apple already has sealed a deal with two major labels Universal Music Group and Warner Music. Inspite of repeated offers, Sony Music and EMI are still far away from any negotiation with Apple.
Rumor has it that Apple’s new music streaming service, “iRadio” will generate more revenue for studios it strikes a deal with when compared to its competitors. The streaming service will offer users quick, easy downloads and an ad-inclusive environment. The service is rumored to be free for its users but can turn paid at any point of time. Apple is very keen to have users download its free music service, the “iRadio”. With iRadio, users can download songs quickly through the iTunes store on a laptop or PC.
There is no confirmation from Apple about when the streaming service will be launched and how many label companies Apple is planning to target. But rumors of the iRadio surface from time to time. Apple is reportedly altering its payment structure to generate ad-based revenue instead of the more traditional pay per play rate. This is what is holding Apple back when it comes to music labels that prefer the more reliable per-play rate. Since the streaming service will support ads, it is free and available to users on iTunes accessible from the PC, iOS or Apple TV.
Rumor has it that the company is trying to work all deals and be in a position to launch its music streaming service, iRadio this summer. Users will have to wait and see if this rumor actually materializes.