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Apple was seeking a license that would allow it to point listeners directly to iTunes as well as play a selected artist more times than Pandora’s rights allow.
SONY/ATV STOPS APPLE’S STREAM
iPhone5 Was Planning to Launch with Pandora-Like Streaming Service

Apple’s plan to offer a music-streaming service built into its iPhone 5 was derailed when talks with Sony/ATV hit a roadblock, according to several published reports.

Sony/ATV, now the world’s largest publisher after its acquisition of EMI Music Publishing, and Apple couldn’t agree on a per-song rights fee, according to sources.

Those rights are usually in the tenths of a penny per stream, while Sony/ATV was looking for a higher rate.

According to the same report, Martin Bandier is about to pull Sony/ATV's digital rights from both performing rights organizations, ASCAP and BMI, in January.

That would make it much harder for Internet streaming and radio sites, like Pandora, to negotiate future rights deals. ASCAP and BMI negotiate streaming rights for all members.

With EMI, Sony/ATV now administers 2 million copyrights. Talks between Bandier and Apple’s Eddy Cue had been moving ahead until the snag, when word leaked earlier this month about Apple’s planned streaming service, which knocked 22% off the price of Pandora shares over 48 hours.

Sony/ATV is partially owned by Sony, Apple’s consumer electronics rival, and by the Michael Jackson estate.

Apple and the music labels have been in discussions to form a customized radio service that adds a human element to new music discovery, with a nod toward record company priorities.

Apple was seeking a license that would allow it to point listeners directly to iTunes as well as play a selected artist more times than Pandora’s rights allow.

The current impasse means music streaming is more likely to appear as an iPhone update in the future.

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