It looks like Apple's talks with the world's largest music industry representatives was a success. As reported by The Verge, Internet radio service from Apple will be presented this summer at a conference for app developers. What is the reason to their conclusions?
According to sources close to Apple's negotiations with the world's largest labels, the two sides could come to a consensus. Now the corporation has the right to play the tracks by popular artists on iRadio, without violating the copyright.
Not long ago, a serious war arose between the technology giant from Cupertino and music corporations. Apple does not want to adapt to other existing radio services - Pandora and Spotify, but rather dictate its own price for the audition of music content. But the fact is that the record companies are not happy with this alignment: why pay Apple several times less, if you can extend the contract with e.g. Pandora?
Perhaps the prospect of rapid development of iRadio was a success after all. Therefore, representatives of the music industry realized that the likely future income will compensate all costs and losses they would incur in the early stages of the service. Another option - Apple would restrain its appetites and offer a more favorable terms.
Of course, we will be having more info as long as new details about the negotiations emerge. It should be noted, all the time developing iRadio leaks were extremely insignificant: the application was seen in iOS 6.1, but we couldn't tell much about the service. Integrated Radio is already available in iTunes to any user. So does it make sense to reinvent the wheel? We don't think that Apple would develop something without the calculation of potential financial feedback. Although, the music social network Ping didn't work out that well.
Spotify and Pandora will make every effort to prevent the iRadio from winning the market but nonetheless they will be dealing with a very dangerous competitor. These major radio services may suffer huge losses if the product from Apple will take over this industry. Spotify has tens of millions of registered users who the company would need to keep loyal. Probably, the service will have to go for drastic measures, including a reduction in the price of an annual subscription.by Dmytro Bilkun