iRadio talks hit snag

iRATE OVER iRADIO: Apple has hit a stumbling block in its negotiations with Sony Music over royalties for the company’s planned streaming service, but is close to a deal with WMG, the Financial Times reports. Initially offering roughly 6 cents per 100 tracks streamed, Apple has more than doubled the proposed rate to 12.5 cents per 100 tracks, putting it in line with the rate paid by Pandora. But it was unclear whether UMG had accepted the 12.5-cent rate, and Sony is thought to be pushing for better terms. Some industry execs argue that cash-rich Apple should pay a higher rate than Pandora, which had 70 million “active listeners” in April, because of its broader ambitions for iRadio. These include using data it already has from hundreds of millions of iTunes users to predict the selection of tracks they’re likely to enjoy, and a plan to allow listeners to purchase songs seamlessly via the iTunes store. Those familiar with the terms say Apple was offering the label three different revenue possibilities: a royalty per track streamed, a share of iRadio’s advertising revenue and a guaranteed minimum sum over the course of the contract that would provide a safety net just in case the number of plays or advertising dollars weren’t up to snuff. Apple is reported to be working hard toward reaching a deal for a summer launch. (5/10a)