The New York Post reports exclusively today that Apple’s initial licensing offer to the industry was $0.06 for every hundred songs streamed. That’s half the fee paid by Pandora Media Inc. (NYSE: P) and less than a third of the $0.22 paid by streaming services affiliated with broadcast stationsq. According to the Post’s story, the highest fee is paid by Spotify, at $0.35 per hundred songs streamed.
Would the music industry love to have Apple in the fold? Darn right it would. Can Apple make any money at $0.12 per hundred songs streamed? Pandora can’t, but Apple has its own mobile advertising platform, iAds, and that offers the company another revenue source. Of course the music industry wants a piece of the ad revenues as well and a fat upfront payment as well most likely.
Google Inc. (NASDAQ: GOOG) is also negotiating with the recorded music industry for its own streaming service, and like Apple, the search giant has its own advertising platform which could help it make a profit from streaming music.
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