Sony is STILL negotiating with iRadio
Apple’s much anticipated iRadio has hit a Sony-shaped stumbling block – the major label is umming and ahhing over the deal to sign up to the new music streaming service.
Sony reckons that if iRadio is a success on a par with iTunes, then it should be offering them a better deal. At the moment Apple is offering labels a royalty of 8p per 100 songs streamed, plus a share of ad revenue and a guaranteed fixed sum in case it all goes tits up and nobody listens to it. But Sony didn’t get where they are today by piddling around over 8p. So they’ve dug their heels in and are stroking their white cats and playing with their clacking silver desk balls and saying ‘Your move, Mr Apple’ (or whatever successful businesspeople get up to these days).
It’s a bit of a blow for Apple, who have reportedly already signed Warners and and were waiting for Sony to complete the deal. But if they don’t offer the label any more than the going rate (Pandora also pay 8p for 100 tracks) the music giant, - who manages all our ‘favourite’ acts like er… John Legend, Ke$ha and One Direction - ain’t going to budge.
So come on, Apple. If iRadio is going to launch this summer, they're going to need some Jack Donaghy style negotiation and synergy – FAST.