Apple iRadio: When it comes to the world of online radio, Pandora is pretty much top dog. Until Apple Inc. (NASDAQ:AAPL) decides to toss its hat in the ring. It is being reported by multiple outlets, including CNET, that the Cupertino-based company is “close to striking a streaming deal with two of the major music labels that could end up far sweeter for the music industry than what the labels currently get from Pandora.”
If you want to learn more about what Apple Inc. (NASDAQ:AAPL) is hoping to accomplish you don’t have to look any further than this piece that we published a few days ago: Apple Inc. (AAPL)’s iRadio Is Coming & Pandora Media Inc (P) Is Scared
Here is a snippet, discussing the rivalry between Pandora and Apple that is sure to heat up in the near future:
“According to The Verge, Pandora’s been pushing for lower royalty rates on the music it streams to its customers — which currently cost the company $0.12 per 100 songs. The company is arguing that with the advent of Spotify and the imminent arrival of Apple in the field, competition is heating up, the market is growing, and the music industry should be happy to make more money by charging less for a great many more songs being sent out through multiple pipes.”
When Apple Inc. (NASDAQ:AAPL) arrives in an industry, no matter what industry it may be, one thing is sure to happen: the competition is going to pay attention. The company has the knowledge, man power and money to make a run at just about any industry it wants. On top of this, we know from past history that Apple is not going to get involved in a space unless they are confident it will succeed.
The new Apple Inc. (NASDAQ:AAPL) radio service will be connected to iTunes and available on mobile devices.
At this point, you may be wondering which labels Apple is going to get involved with. While there is no way of saying for sure, the sources quoted by the CNET piece feel that Warner Music and Universal Music Group could be the two big winners.
With all this in mind, the article does note that “both people caution that the deals have not yet been made and could still fall apart.”
Even though nothing is clear cut just yet, Apple is looking to roll out the service this summer. If the company wants to meet this deadline, the deals will have to be made sooner rather than later.
Would you use this music streaming service from Apple Inc. (NASDAQ:AAPL)? Share your thoughts in the comment section below. If you’re interested in some other industries that Apple could be entering soon, check out our exclusive slideshow by following this link.
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DISCLOSURE: I have no positions in any stock mentioned.
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