Report: Apple deal with record labels imminent
Apple will allegedly make it easy for listeners to easily purchase a song they hear through iTunes which will boost downloads and drive revenue to the labels. Another way for the record companies to profit would be to cut them in to a share of the proceeds that Apple will receive from audio ads that Apple will be running on the service.
The sources say that the negotiations are not solid and could fall apart at any time. One tipster says that the only sure money for the record labels is the per-play rate. There is no guarantee that Apple will be able to secure ads and it is unknown whether people will buy the songs from iTunes that they hear from the streaming radio service. If the labels agree to the 6 cents deal from Apple, they are taking a risk that the other revenue streams fail to deliver any revenue at all. Still, there is a good chance that everything falls into place and the streaming service debuts this summer.
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