The latest rumor suggests the fact the Apple is planning to sign an agreement with Universal Music, the leading record label, in order to achieve a streaming iRadio service for iOS devices. The deal will be closed as early as the next week.
Universal Music, one of the greatest record label companies, has finally reached an agreement with the big Fruit Company, leaving the Warner Music somewhere behind. According to the talks between the two tech giants, Apple is planning to launch a web radio service, which resembles pretty much as Pandora, later this year. In the same time, while trying to settle a deal with Universal and Warner, Apple also focused on finding a middle way for signing also with Sony Music Entertainment and Sony/ATV.
Apparently, the new streaming iRadio service is meant to help iTunes users to find more new music and in the same time, to boost sales and downloads. This will also generate increased sales for Apple and various ad companies. In the same time, the iRadio service will receive multiple on-demand features. Some critics actually believe that Apple will introduce a “freemium” pricing model in order to make the iRadio service even more intriguing. Nevertheless, Apple will also offer users the possibility to quick buy certain newly added items through a “buy now” button.
Through this service, Apple will not receive that much. The Fruit Company will pay rates that are close to what Pandora is paying now. If previously Apple paid 6 cents for 100 songs streamed, now the price is a little bit higher.
Because of the increased number of iTunes users, the most probably is that the service will become a threat to Pandora. For now, Apple already took the first place in front of the country’s top music stores, but services such as Spotify or Pandora developed a different strategy and they managed to reach the first spots. Both of these services offer streamed music to users while users do not have to worry about saving or purchasing songs to store on their hard drivers. At this point, Pandora reached more than 200 million users. This is an impressive number for Apple to beat. However, as I states earlier, the number of iTunes is also quite high. For now, Apple used the famous service iCloud in order to offer users the possibility to store their purchased items.
As analysts showed a few days ago, the number of downloads and sales that Apple had experienced through the iTunes service has reached 25 billion songs, and it has placed the giant Cupertino company in the first spot among other notable rivals such as Google, Microsoft or BlackBerry.