14 DAY TRIAL // Apple continues to hit one roadblock after another in its attempt to get the music labels to sign deals for content distribution through iRadio, a rumored music streaming service which reportedly offers a number of special perks for end users.
Sources say Sony/ATV is not only having trouble accepting Apple’s terms, but has actually rejected their offer, while “BMG Rights Management, the fourth largest music publisher, is also holding out,” according to sources speaking to The Verge.
That’s not to say some labels don’t want in on iRadio. According to insiders cited in the report, there's still plenty of “market momentum” behind the service.
Universal Music Group, for example, which has managed to reach an agreement with Apple, “want to see [iRadio] launch as soon as possible.”
The problem for some labels, however, isn’t just the agreement that needs signatures from both parties, but also some of the functionality proposed by Apple’s iRadio.
While Google chooses to offer a standard subscription model for its music service (one that’s very similar to Spotify and Rdio, according to said sources), “Apple […] is pioneering a hybrid web and radio service — one that resembles Pandora but melds it with some on-demand features, the sources said.”
As such, Apple had to create an all-new licensing agreement which meant that “negotiations were going to take longer,” one of the sources said.
The Cupertino-based iPhone maker has had similar problems with its iTunes Match service. Although the product turned out to be successful, the partnering companies were very constrained initially.
Apple is reportedly faced with a similar situation in the TV segment, where the cable companies refuse to change an extremely profitable, yet fundamentally outdated business model, when faced with propositions from Apple to introduce an all-new iTV to revolutionize our living-rooms.