Apple Inc is strengthening its relationship with leading music labels to begin an ad supported streaming radio firm that would give a tough competition with Pandora by 2013, according to the reports released. The high-profile talks on how to share advertisement profit and an agreement could be formed by mid-Nov, with AAPL establishing service within first 3 months of next year. It is said that Apple is putting efforts to try its hand on music department and it will start the service very soon as the discussions are in quick progress.
With music downloads declining, AAPL and record agencies want to build new ways for consumers to explore and purchase digital music. As of now, Pandora Media Inc is leading the segment and Apple wants to challenge the firm and look for licensing pacts with labels, which will allow more flexibility about what customers listen to. The internet radio leader, Pandora depends on a mandatory license, which restricts how often listener can skip the music and how many times in a hour, a user can be play it.
The software giant is trying to make its service available at the earliest. BTIG LLC analyst said radio is a natural step for the company that helps them to dominate in vehicles where travelers prefer to listen to radio for at least 2 to 3 hours a day.
Pandora Media Inc Company is based in Oakland, Cali and had its biggest fall yesterday since September 7. Bloomberg News reported that Pandora dropped 12% to $8.2 in New York, while Apple’s expansion is in discussion with other labels. It lost a share of about 18% this year.
Universal Music Group Executives from Vivendi SA, Sony Corp and Warner Music Group’s music division visited Apple’s main branch in California to learn about its plans and how it wants them to implement. Apple is the globe’s leading music retailer having 400million iTunes accounts and now it is seeking users to be able to purchase tracks as music revisit or streams what they hear in auto-created playlists. The company is planning to develop an app tailored for iPod Touch, iPad, and iPhone rather than delivering music via web browser.
Pandora develops music stations, depending on listener’s taste and its shares fell 17% in September, but gained 8.4% on October 23, after Apple did not release its radio service during a program that it organized to release the new iPad mini, which is a smaller version of its tablet slated to release in next month.