There have been a mass of rumors hitting the web lately regarding the possibility of Apple unveiling its own music streaming service, with analysts claiming that the streamer would mimic that of the popular website Pandora Radio.
And to be honest, it actually makes a lot of sense on Apple’s part considering how involved the tech giant is in the musical market. With iTunes becoming such a popular entity in music purchase and sharing, I think that Apple could really benefit from a free/paid streaming service, especially one that runs directly through iTunes and gives a mass of album and song purchase options.
But according to reports, the consumer tech world was supposed to see some updated information on this possible service at Apple’s big iPhone 5 unveiling this past month. As we all know though, nothing materialized regarding the iTunes Streamer, and it left many individuals scratching their heads as to why there was no update. But, thanks to a report by the NY Post, we are getting insight into why this application has seemingly disappeared from the Apple radar.
For the past few months, Apple has been actively seeking music streaming rights from musical powerhouse Sony/ATV. But a few shakeups in the entertainment industry have all but destroyed that potential partnership. Sony/ATV, which is owned by both Sony and the Michael Jackson Estate, is planning on pulling away from ASCAP and BMI, two of the biggest music copyright companies in the world. This pullout is most likely due to Sony/ATV’s recent approval for acquisition of EMI Music Publishing, which currently produces over 2 million copyrights to a variety of chart topping artists. This purchase will allow Sony/ATV to have exclusive rights to popular modern musicians like Taylor Swift and One Direction and past Hall of Famer’s like The Beach Boys and The Beatles.
And that’s where things get bad for Apple. Apparently, Sony/ATV has already rejected one of the tech giants deals, which comes as a very tough loss for their plans of a dominant music streaming service. It’s welcome news to Pandora though, who suffered a 22% stock value loss on September 6th thanks to leaked rumors regarding Apple’s streaming endeavor. Apple plans on producing more than just a music algorithm and instead wants to create a streaming environment that mimics the current recording industry and its trends.
There is no other word on the current state of the negotiations between Sony/ATV and Apple, but we will keep you updated as new news breaks.
