The rumors of an upcoming Apple (NASDAQ:AAPL) iRadio music streaming service summer debut got a boost on Friday when The Verge reported a breakthrough in Apple’s music licensing negotiations with music labels Universal and Warner.
Last month the New York Post reported that Universal, Warner, and Sony (NYSE:SNE) all balked at Apple’s initial low music streaming fee offer. Music streaming services typically pay a fee per hundred songs streamed. Pandora (NYSE:P) currently pays the lowest fee of any music streaming service at 12-cents per 100 songs. Apple was reportedly offering 6 cents per song.
According to The Inquisitr, Pandora filed a lawsuit last year in order to force ASCAP to give it a comparable rate to what another internet radio platform, iHeartRadio, was receiving through its Clear Channel (NYSE:CCO) parent company. According to the New York Post, the industry standard is 21 cents per 100 songs.
However, Apple does come to the negotiating table with considerably more benefits to offer to the record companies than a typical internet radio streaming service. According MacNN, “Apple has more than 400 million accounts with credit cards on file, the largest music catalog available anywhere, an enormous base of daily users, a complete mobile and desktop ecosystem, and the commerce infrastructure to easily allow listeners to buy songs they hear and like.”