Apple is in a rush to close deals with the rest of the music companies to launch iRadio in June 10 at WWDC.
News about Apple creating its own 'Pandora' or music- streaming service which will be called iRadio stalled for the past few months due to licensing deals. However, an update from The New York Times confirmed that the service is expected to debut at the upcoming WWDC.
To date, Apple has finalized deals with Universal Group Music whose artists include Jay-Z, Rihanna, Nicki Minaj, and more. Warner Group Music with artists Bruno Mars, Flo Rida, Josh Groban, Paramore, and more signed up as well. Apple is still negotiating terms Sony Music Entertainment to get music from Adele, Chris Brown, Mariah Carey, and others.
There had been slow progress in terms of negotiations as these companies are looking for higher royalty rates and surefire minimum payments but they are being offered less by Apple. However, we will know if Apple made a deal as soon as we see the iRadio on the Apple Worldwide Developers Conference, or WWDC, in San Francisco from June 10 to 14.
Apple and the music companies refused to comment about iRadio. Apple confirmed though that the conference will talk about the future of iOS and OS X.
The iRadio service once released will offer free music-streaming to all iOS users. Apple is eager to compete with Pandora as it currently has 70 million active users worldwide. The service will be free since Apple will get the funding from advertisements.
The music companies are also excited about the iRadio as Apple is expected to pay four times the rate that Pandora gives. Pandora has a fixed penny rate of 12 cents per 100 streams plus another fee for each song skipped.
Instead of making federal arrangement to close the deal, Apple approached the music companies directly to earn more extensive terms.