Apple will pay music labels more than Pandora for its new iTunes Radio service, according to terms reviewed by The Wall Street Journal. In addition to a set fee, the Cupertino company will also cough up a cut of its net advertising revenue every time a song is played.
Back in February, the Australian parliament demanded explanations from Apple, Adobe, and Microsoft over the prices charged for their products down under, with some goods costing as much as 70% more than they do in the United States. Apple has today responded to the inquiry, but don’t expect the Cupertino company to be reducing its prices anytime soon.
This year is likely to be another big one for Apple — even if we don’t see that much-anticipated television set. One new product the Cupertino could have up its sleeve is an internet radio service called “iRadio.” It’s reportedly been negotiating the necessary deals with the music labels, and one analyst expects the service to be integrated into iTunes within the next 12 months, competing with the likes of Pandora.