Apple's streaming music service could debut this summer

With Universal and Warner in serious negotiations with Apple, the latter is ready to debut its streaming radio service, dubbed "iRadio", sometime this Summer. You might remember back in February when icons for a streaming music service were found on an Apple iPad running iOS 6.1. The service was supposed to start earlier this year, but reports were circulating that Apple was playing hardball with the record labels. For example, while Pandora pays 12 cents for each 100 songs streamed, Apple was sticking hard to its offer of 6 cents for each 100 songs.

According to a source for The Verge, Apple is sitting on 'Go'. "The “iRadio is coming. There’s no doubt about it anymore," said the source. Apple will be entering a very competitive arena, but if it can use its clout to get better deals than Pandora, Last.fm and Spotify, Apple will be able to profit even if it offers the service free, supported by ads like the latest rumors say. Speaking of Spotify, that service is believed to pay the labels the most at 35 cents per 100 songs.

It is unclear what kind of deal Apple is seeking with Universal and Warner. Pandora's rate is set by a statute that covers web radio services, but it says that the rate needs to be lowered for it to remain profitable. Knowing Apple, Pandora and the other streaming music services should be afraid. Very afraid. When Apple enters a market, they play for keeps.

source: TheVerge via Pocketlint