Apple Still Negotiating With Sony and Warner Over iRadio Royalties

itunes_radio_round_iconApple is still in negotiations with Sony and Warner over its iRadio streaming music service, reports the Financial Times. Apple had offered roughly 6 cents per 100 tracks streamed, but later reportedly raised this to 12.5 cents per 100 tracks -- similar to the rate paid by Pandora.

Although the company has reached an agreement with Universal Music, the largest record label, the FT claims other labels are still looking for better terms. Apple is reportedly working hard at reaching a deal and wishes to launch the 'iRadio' service at some point this summer, perhaps at WWDC in June.

Some music industry executives argue that cash-rich Apple should pay a higher rate than Pandora, which had 70m "active listeners" in April, because of its broader ambitions for iRadio. These include using data it already has from hundreds of millions of iTunes users to predict the selection of tracks they will enjoy, and a plan to allow listeners to purchase songs seamlessly via the iTunes store.

The people familiar with the terms said that Apple was offering labels three tranches of revenue: a royalty per track streamed, a share of iRadio’s advertising revenue and a guaranteed minimum sum over the course of the contract that would provide a safety net in case the number of plays or amount of advertising sold disappoints.

The FT notes that Apple is intentionally not launching an on-demand service like Spotify in order to avoid cannibalizing purchases from its iTunes Music Store. Instead, the iRadio service will allow customers to discover new music and likely direct listeners to the iTunes Store to buy music they enjoy.

Popular Stories

Tim Cook Rainbow

Apple Event in October? Here's What to Expect

Monday September 29, 2025 9:31 am PDT by
Apple's annual iPhone event is in the rearview mirror, but rumors suggest the company plans to release a handful of additional products before the year ends. Will there be another Apple event this October? We discuss the possibility below. Apple in October Apple's most recent October events were in 2021 and 2023. In 2022 and 2024, Apple did not host an October event. Instead, it...
apple wallet drivers license feature iPhone 15 pro teal 1

Apple's iPhone Driver's License Feature Now Available in 11 U.S. States

Tuesday September 30, 2025 6:40 am PDT by
In select U.S. states, residents can add their driver's license or state ID to the Wallet app on the iPhone and Apple Watch, providing a convenient and contactless way to display proof of identity or age at select airports and businesses, and in select apps. Apple recently revealed that the feature would soon be available in North Dakota, and starting today, the feature has officially gone...
space black mbp

Here's Every New Apple Product That Leaked Yesterday

Wednesday October 1, 2025 8:27 am PDT by
A handful of upcoming Apple products leaked yesterday, through a combination of YouTube videos out of Russia and U.S. Federal Communications Commission (FCC) documents that were released, despite Apple's confidentiality requests. The leaked products include an iPad Pro with an M5 chip, as well as updated MacBook Pro and Apple Vision Pro models. All of these devices had already been rumored...
maxresdefault

New iPad Pro With M5 Chip Leaked in Unboxing Video

Tuesday September 30, 2025 8:39 am PDT by
An apparent unboxing video for an unannounced iPad Pro with the M5 chip was uploaded to YouTube today by Russian channel Wylsacom. The same YouTube account leaked the 14-inch MacBook Pro with the M4 chip before it was announced by Apple last year, so this is likely a legitimate leak. Based on the box shown in the video, this appears to be a 13-inch iPad Pro with an M5 chip, 256GB of...
fcc vision pro leak

FCC Accidentally Leaks Apple's Next Vision Pro

Tuesday September 30, 2025 3:48 pm PDT by
The United States Federal Communications Commission (FCC) has seemingly confirmed Apple's work on an updated version of the Vision Pro headset. One of several documents the FCC shared today references an Apple-designed "Head Mounted Device" with a model number of A3416. An included image confirms the device is a Vision Pro. The FCC's uploads are transmission tests, SAR test reports, and...
macbook pro prime day 2025

FCC Leaks Upcoming MacBook Pro and More

Tuesday September 30, 2025 1:58 pm PDT by
The United States Federal Communications Commission has confirmed Apple's work on a new version of the MacBook Pro and several other products, leaking details on the devices ahead of launch. The FCC published documents that reference model numbers that do not correspond with existing devices. A3434, for example, references an unreleased MacBook Pro, while other numbers are likely for...
iOS 26 Feature

iOS 26.1 to iOS 26.4 Will Add These New Features to Your iPhone

Wednesday October 1, 2025 1:26 pm PDT by
iOS 26 was released last month, but the software train never stops, and iOS 26.1 beta testing is already underway. So far, iOS 26.1 makes both Apple Intelligence and Live Translation on compatible AirPods available in additional languages, and it includes some other minor changes across Apple Music, Calendar, Photos, and Safari. More features and changes will follow in future versions,...
iOS 26

Apple Releases iOS 26.0.1 With Fixes for Wi-Fi, Cellular, and Camera Issues on iPhone 17 Models

Monday September 29, 2025 10:12 am PDT by
Apple today released iOS 26.0.1 and iPadOS 26.0.1, the first updates to the iOS 26 and iPadOS 26 operating systems that came out earlier this week. The new software can be downloaded on eligible iPhones and iPads over-the-air by going to Settings > General > Software Update. According to Apple's release notes for the update, iOS 26.0.1 addresses a bug that could cause aberrations in...
Apple 2025 Thumb 1

Apple's 2025 Product Roadmap: What's Still Coming

Wednesday October 1, 2025 3:56 pm PDT by
Apple's two big yearly events, WWDC and the iPhone launch, are done and over with, but there are still some new products that we're expecting to see before the end of the year. Apple TV The Apple TV hasn't been updated since 2022, so it's due for a refresh. It doesn't look like Apple is going to change the design of its set-top box, but we can expect a faster chip Apple code suggests...
iOS 26 Everything New Feature

26 Hidden iOS 26 Tricks to Change How You Use Your iPhone

Wednesday October 1, 2025 9:16 am PDT by
Apple released iOS 26 in mid-September, bringing a range of new features and changes to iPhones across the globe. But not all of the included improvements have been showcased with Apple's typical fanfare, and many are likely to have been overlooked. Below, we've highlighted 26 lesser known additions and enhancements that could potentially change how you use your iPhone on a daily basis. Got...

Top Rated Comments

aheying7 Avatar
162 months ago
As a high school student, I can say everyone I know quit using iTunes and uses Spotify exclusively now. That's what Apple needs to compete with, NOT Pandora. In other words, you should always be able to pick the song like Spotify.
Score: 8 Votes (Like | Disagree)
extradryny Avatar
162 months ago
Apple is intentionally not launching an on-demand service like Spotify in order to avoid cannibalizing purchases from its iTunes Music Store. Instead, the iRadio service will allow customers to discover new music and likely direct listeners to the iTunes Store to buy music they enjoy.

Tim Cook, 1/23/13:

“I see cannibalization as a huge opportunity for us,” Cook said Wednesday. “Our core philosophy is to never fear cannibalization. If we don’t do it, someone else will."
Score: 7 Votes (Like | Disagree)
ChadMobley Avatar
162 months ago
If it isn't one company that's greedy, it's another...how about being pro consumer for once! Without us, these companies are no where.
Score: 6 Votes (Like | Disagree)
foobarbaz Avatar
162 months ago
Some music industry executives argue that cash-rich Apple should pay a higher rate [...] because of its broader ambitions [...] and a plan to allow listeners to purchase songs seamlessly via the iTunes store.

Charge Apple more because they might bring in additional revenue. The music industry doing it what it does best.
Score: 4 Votes (Like | Disagree)
vannibombonato Avatar
162 months ago
Right in the short term, wrong in the long one

I believe it's the first time "i miss Steve".
With the Pandora-like agreement Apple is doing exactly what a Microsfot would do: go where the money is, not where it will be.

Consumers want to have Spotify-like service, and in the end the consumer always win. If Apple doesn't do it, someone else will.

We had complete albums, then iTunes revolutionized the industry with the capability of purchasing single tracks, now Spotify and the likes revolutionize it again with their service, wich is plain better (for 90% of consumers) than purchasing music in iTunes.

I'm not using iTunes since one year, and so is any of my friends who had a chance to try Spotify. They couldn't believe it costed 10$ per month, just as i couldn't believe a song could cost 1$.

Apple should go where the consumers want to be lead, and do it better than competitors. It pays in the long run. The right thing to do is to satisfy and surprise consumers, not one-year forecast of share value.
Why on earth should i ever purchase a song that i listened from "iRadio" for 10% of what i pay to Spotify monthly to listen to it wherever i want whenever i want on whicherever device i want, all perfectly synced, is beyond my mind. And boy, yes i'm an Apple fan.
Trying to go against the tide, against what is better for consumer, might be good for iTunes sales for the next 2 years, but plainly wrong in the long run.

Purchase spotify, integrate it with your ecosystem, make it better rename it and re-invent the music industry again.
Score: 3 Votes (Like | Disagree)
TC03 Avatar
162 months ago
I think Spotify (or other services alike) are the future. Still, I do see why Apple won't cannabalize the iTunes store.
Score: 3 Votes (Like | Disagree)