Universal Music and Warner Music are said to have made deals within the last month.
The service is expected to be advertising-supported and will compete directly with Pandora, allowing users to build custom stations based on tracks, artists and genres.
Sony Music is a joint venture between Sony/ATV Music Publishing and the estate of Michael Jackson. The licensing deal will be for a two-year introductory period and gives Sony a full 10 percent of all advertising revenue generated by their catalog via the service.
10 percent is more than double that standard 4 percent that companies like Pandora pay, and leaves margins much much lower for Apple.
Written by: Andre Yoskowitz @ 8 Jun 2013 12:48