Dive summary:
- According to the Financial Times, Sony is unhappy with Apple's proposed royalty rates for iRadio and may hold up the summer launch date with negotiations.
- What Sony would like is similar to Pandora's 12.5 cents for every 100 tracks streamed, but Apple has proposed a royalty per track shared, a 50 percent share of iRadio's revenue, and a guaranteed minimum safety net payment.
- This three part revenue model could prove more lucrative for music companies in the long run, but Sony knows it needs all record companies to be on board and continues to negotiate.
From the article:
"The delay could give an advantage to Apple rival Google, which is poised to launch its own streaming service via YouTube this summer. Google might also release a subscription music service for Google Play soon that will be similar to Spotify and other on-demand music streaming services."