Apple is inching closer to a new streaming music service for iTunes, according to people familiar with the matter. Earlier today, Apple inked a licensing deal with Warner Music Group for the rights to its recorded music and music publishing, agreeing to terms on the publishing side that other major music publishers have been seeking, according to people familiar with the matter. UPDATE June 07, 2013.
Under the deal, Apple will give Warner Music Group's publishing arm 10% of ad revenue—more than twice what Internet radio giant Pandora pays major music publishers. Warner's terms with Apple could pave the way for other major publishing deals to follow. The move could mean that Apple wants to make an announcement of their new service during Tim Cook's World Wide Developer keynote on June tenth. Other industry observers think that Apple will aim their iRadio announcement with the debut of the next iPhone.
Apple has signed a deal with Universal Music Group for its recorded music rights but not its publishing rights, while Apple remains far apart on negotiations with both Sony Music and Sony's separate publishing arm.
It was reported by Reuters Canada back in early March that Apple had held talks with Beats Electronics LLC, the audio technology firm co-founded by influential hip-hop producer Dr Dre and music mogul Jimmy Iovine, on a potential partnership involving Beats' planned music-streaming service called "Project Daisy."
Apple's Internet products chief Eddy Cue, a key player in setting up its iTunes Music Store, also joined that meeting, at which Cook expressed interest in Daisy's business model and its rollout plans, although the two did not discuss specifics of a deal.
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