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(Image Source: All Things D)
BY NICHOLE CARTMELL
Pandora, Spotify: watch out. New competition is on its way. Apple is a step closer to developing
iRadio.
The tech giant has finally reached a deal with Sony Music and its publishing arm Sony/ATV
— one of the last roadblocks for the product. Universal Music and Warner Music have already
struck deals. (Via YouTube / Apple)
This deal took quite some time. A major point of contention for Sony was how much Apple
would pay for songs that people only listen partially and then skip. (Via CarrieUnderwoodOfficial.com)
As it stands now, under Sony's two-year introductory deal, Apple will give 10 percent of any ad
revenue it generates from Sony Music.
iRadio is expected to be a free, online, ad-based service that uses user preferences to tailor
music selections... must like it's future competitor Pandora.
All Things D explains iRadio would be like an "enhanced version of Pandora." Users will
have more control over their songs than what Pandora offers, but not full on-demand like
you have with Spotify.
Pandora currently reigns supreme when it comes to Internet radio, with about 70 million active
listeners.
But CNET reports it's only available in the U.S., Australia and New Zealand. Apple, on
the other hand, hopes to make its services more global including countries like the U.K.,
France, Germany and Japan.
And announcements regarding Apple and its radio service have been rocking Pandora shares.
When Apple signed a licensing deal with Warner Music Group, Pandora shares fell more than
10 percent. And they are still down about $2 from last Friday's close. But one economic
analyst argues we won't really know how Pandora will fare until Apple actually unveils iRadio.
"'We doubt Apple will be dominant in this venture.' Whatever Apple does, everyone will
get a chance to get excited, or frightened of it..." (Via MarketWatch)
Apple is expected to make an official announcement about iRadio at its Worldwide Developers Conference
Monday.