Apple Planning To Launch Rumored Spotify Killer In Early 2013 [Report]

Apple Planning To Launch Rumored Spotify Killer In Early 2013 [Report]

What could iTunes Match have been if the record labels had said yes to Apple’s real streaming service sooner?

Word on the street has been that Apple is preparing to launch its own Spotify/Pandora-killer in the near future, and a new report today from Bloomberg claims that the rumored internet radio service will launch in early 2013.

Apple has reportedly been in talks with many of the major music labels for quite some time, and deals will hopefully be reached by mid-November. The details of the upcoming service remain a mystery, but it looks like Apple isn’t settling for the status quo.

Apple Inc. and major music labels have intensified negotiations to start an advertising-supported Internet radio service by early next year, according to people with knowledge of the talks.

Talks are centered in part around how to share ad revenue and a deal could be reached by mid-November, with Apple starting a service within the first three months of 2013, said the people, who asked not to be named because discussions are still in progress.

“Executives from Vivendi SA’s Universal Music Group, Warner Music Group Corp., and Sony Corp.’s music division visited Apple’s headquarters in Cupertino, California, in recent weeks to learn more about its radio plans,” according to the report. Apple and the labels are trying to cut deals on sharing ad revenue. The iAd network will assumedly be involved.

The Wall Street Journal reported on Apple’s upcoming radio service last month, specifically mentioning similar services like Pandora and Spotify as possible targets. Apple’s “radio” idea sounds more like a music discovery service that’s meant to promote the iTunes Store. The radio service in question would assumedly be tied into iTunes and available across iOS devices.

According to unnamed sources, Apple wants “more flexibility about what listeners hear” than competitors like Pandora. For instance, instead of having a limited number 0f track skips, the listener would have no limit and would instead have to listen to an occasional ad. Apple also wants access to new music releases before anyone else, according to today’s report.

Pandora’s stock value has dropped more than 10% since this story broke.

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  • MacHead84

    Really hope its true, Spotify and Pandora just feel like theyre missing something to me. Im sure if Apple were to get into this business they’d perfect it but I really question whether this goes against their business model with iTunes. But if they are seeing something favorable in the revenue streams of the other services then they may be willing to dive in.

  • Steve Peterson

    Now, is it you who’s referring to this as a Spotify Killer, or did Apple describe it as such? Is Apple’s intent really to drive Spotify out of business? Why can’t it just be said that Apple plans to release a competing service?

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Alex HeathAlex Heath has been a staff writer at Cult of Mac for over two years. He is also a co-host of the CultCast. He has been quoted by places like the BBC, KRON 4 News, and books like "ICONIC: A Photographic Tribute to Apple Innovation." If you want to get in touch, additional contact information is available on his personal site. Twitter always works too.

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