According to all kinds of reports this morning, Apple and Warner Music have finally signed the long awaited streaming music deal. How will Apple's streaming music service differ from all the rest? What is Apple cooking up? The details of the deal aren't entirely transparent right now, but here's what's known so far (for all you music fans!).
Details of the Deal
Since last summer, Apple has been working on the company's new streaming music feature. So far, it's known that the streaming service would tailor music selections to each person's unique music taste. Based on various sources, the problem with Apple's streaming service was the royalty asking price of various record labels. Now, those prices have apparently shifted, and Apple has finally reached an agreement with those companies.
Apple is rushing to finalize details of the music streaming service. It is expected that the service will be officially unveiled on June 10th at the annual developers conference in San Francisco. So far, Apple has sealed the completed deal with Warner Music, but the company is still working on negotiations with Sony and Universal. When those negotiations will go through is unknown.
Price and Other Details
Right now, it is presumed that Apple's streaming service will be free. Advertisements will likely support the free version of the service. This is right in line with other free music streaming services like Pandora (a service that currently has millions of users). Apple joins Pandora, Google, Spotify, and Clear Channel Communications in the streaming sphere.
Apple might have an edge on the current market if the company can offer a streaming music service in Canada, though. Right now, it is impossible for Canadians in some locations to access any streaming service, so Apple could, potentially, pick up a large market in the north.
What's the Holdup?
The reason why it has taken Apple so long to release the music streaming service isn't because the company hasn't crafted a good service. It is, instead, because music publishers want a large chunk of the company's royalties. Currently, publishers snag around 4% of Pandora's revenue, but the same publishers are asking 10% from Apple. For obvious reasons, Apple is trying to negotiate this price.
Whether or not Apple will be able to get it all together by the 10th of June remains to be seen. It is a good sign, though, that a number of press outlets have picked up this story this morning - that can only mean that Apple radio is on its way. One small note: Apple has not officially dubbed the streaming service 'iRadio.' That title has come from the press.
It should also be noted that Apple has not commented on this story, and that no music publisher has confirmed details of the new Apple streaming music deal. If you can access Apple's new streaming music for free, will you? What will make Apple's new service stand out from the rest? What does Apple need to do differently? Sound off below.