Apple caves in talks with UMG re streaming rates

THE $0.12 SOLUTION: Apple is set to strike a licensing deal with UMG by next week for its planned streaming service, which the press is referring to as iRadio, with Warner Music set to come to terms on its own deal, The Verge reports. According to the story, Apple failed in its attempt to pay half of Pandora's rate of $0.12 per 100 songs streamed, and has agreed instead to pay a rate nearly "neck and neck" with Pandora, a source said. Because of iTunes’ massive number of users, the new service is expected to be an immediate threat to Pandora. Apple still has to strike deals with Sony Music and music publishers, and talks with those companies are said to not be that far along. Especially problematic is UMPG, whose reps reportedly can’t stop giggling. The report supports I.B. Bad’s contention in his latest column that the labels have the leverage in these negotiations. Or, as MacRumors put it in its headline, “Apple Caves on Streaming Music Royalty Rates.” (4/12a)