Apple (AAPL) is rumored to be preparing a Pandora rival dubbed “iRadio” for launch in 2013, but according to CNET’s Greg Sandoval, the company still doesn’t have any major record companies signed up. Sandoval says that Apple’s rumored service is “not being warmly received” by Sony Music Entertainment, Warner Music Group and Universal Music Group, with his sources telling him “a deal with all the majors is nowhere near to being completed.” In September, The Wall Street Journal reported Apple was in talks with the major record labels on a Pandora (P) competitor and in October, Bloomberg reported that the service was on track for launch within the first three months of 2013.
“Even if Apple sweetens its offer or the big labels change their mind tomorrow, these deals take a while to put to bed,” Sandoval added. “Even in the best case scenario, it will still be a while before we see iRadio.”
As 9to5Mac and CNET suggest, the negotiations could have broken down, seeing as a deal was supposed to be reached by mid-November. Back when Steve Jobs was in charge, Apple was almost always able to convince the major record labels to work with it on new services. Does Apple’s inability to woo the major record labels suggest CEO Tim Cook isn’t aggressive enough to secure the right deals? It could very likely be the case that his more passive approach to running Apple could doom its ambitions of breaking into the streaming radio market.
- Technology & Electronics
- Warner Music Group
- Sony Music Entertainment
- Universal Music Group