It’s no secret that Apple has been working feverishly on launching their own streaming music/radio service to compete with the likes of Pandora, Rdio, Spotify and Rhapsody, but they’ve been running into road blocks along the way. The biggest and most talked about “block” is the report that Apple wants to pay record labels much less than what Pandora pays. But it looks like Apple may get their way with at least two of music’s biggest labels, Warner Bros. and Universal Music Group, as their willing to offer other incentives to make up for the lower royalties.
Since the “iRadio” service would seemingly run through iTunes, Apple is willing to make it extremely easy for listeners to purchase the current song in which they are listening, directly through the store. On top of that, Apple’s looking to implement a new ad service (which will make the service free), a percentage of which they’ll apparently give to those labels. With iTunes massive customer base, this is something that is very enticing to those labels and something that companies like Pandora, simply can’t match.
There are still other record labels like Sony and EMI that haven’t sign on for the service, but depending on how well the new iRadio does, it may only be a matter of time when, not if, they sign on too.