Apple’s proposed streaming music service is being held up by the company’s low offer for royalty rates, according to the New York Post. Sources said Apple has offered record labels around 6 cents per 100 songs streamed, about half of what Pandora offers: 12 cents per 100 songs streamed.
A December report noted that progress was slow in talks between Apple and record labels, but no further details were given. While the new report notes that labels would love to open up a new revenue stream via Apple, the offer is seen as too low.
Some insiders suggest Apple should pay the rate set by the Copyright Royalty Board, which is around 21 cents per 100 songs streamed.
A related report from The New York Times notes that licensing negotiations will likely delay the launch of Apple’s proposed service until the summer.
