APPLE REPORTEDLY CLOSE TO FINISHING ‘IRADIO’ DEAL WITH TWO MAJOR LABELS

Sorry, Pandora — you won’t be able to escape Apple’s (AAPL) iRadio after all. CNETreports that Apple is close to signing a deal with two major record labels that would pay the labels half the per-song royalties that they receive from Pandora but would also add sweeteners to the deal that would give the labels added revenues. Among other things, CNET says that Apple will provide “a quick way for consumers to buy a song they hear, potentially boosting download sales from iTunes” and also give the record labels ”a revenue share of new audio ads Apple is planning to add to the free service.” Given that the service will be centered around iTunes and available on all iOS devices, it seems that the labels are willing to take less in per-song royalties in exchange for potentially much wider exposure than what they get from Pandora.

Source: http://bgr.com