Apple’s music streaming service reportedly hit a road block over licensing fees
Apple (AAPL) has reportedly been unable to come to an agreement with the world’s largest music publishing company over licensing fees for its Pandora-like music streaming service that was set to debut alongside the iPhone 5, according to the New York Post. Sony/ATV is said have wanted a higher rate per song stream, however Apple refused to agree to the publisher’s request. Music distributors, such as Pandora (P), usually pay a statutory rate that has been set for all songs played on the Internet. Apple is looking to do more than Pandora, however, and instead had to negotiate with individual rights holders like Sony/ATV. According to the New York Post’s sources, Apple is interested in more flexible licenses that will permit the company to direct users to its iTunes store to generate sales. The license would also allow the Cupertino-based company’s service to play a selected artist more times than Pandora and other music services are currently allowed. Talks are said to be ongoing.
[Via CNET]
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