While the Universal Music Group has come to an agreement with Apple for their “iRadio” streaming service, Sony is holding out for a better deal. While negotiations are still ongoing, Sony and Apple have yet to budge. Via FMQB:
According to The Financial Times, UMG and Apple have come to a licensing agreement, which reportedly pays UMG the same 0.125 cent rate-per-streamed-song that Pandora pays out. Apple had reportedly been attempting to negotiate a lower royalty rate with the major labels, in exchange for a piece of any advertising Apple sells on its new service.
Apple Insider reports that many industry executives feel that Apple should pay a higher rate due to their extensive financial resources and the impending huge success of iRadio.