Apple’s low royalty rate offer for streaming music has record labels grumbling

It’s no secret that Apple has been looking into launching its own music streaming service. Yesterday, we reported that Apple’s Tim Cook and Eddy Cue had met up with Beats’ CEO Jimmy Iovine to discuss Project Daisy, a music service the latter company has planned, including its business model and planned rollout. Now the tech giant has approached record labels with a royalty rate offer that has left them less than enthused.

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Apple’s streaming service would be up against some big name competitors such as Pandora, which pays $0.12 per 100 songs it streams. Record labels aren’t happy with Apple’s initial royalty offer because it is about half that rate at approximately $0.06 per 100 songs streamed. This is an extremely low offer, and it has labels grumbling.

Pandora itself pays a royalty rate that is nearly 10 cents less than the suggested 21 cents per 100 streamed songs set by the Copyright Royalty Board. Labels are saying that Apple should pay no less than this rate. Many other services pay even more, with iHeart Radio shelling out approximately $0.22 per 100 streamed songs, and Spotify paying $0.35 per 100 songs.

This information comes from the New York Post, which got its information from unnamed sources, one of whom is said to be a “high-level executive.” According to these sources, in addition to a higher rate for streaming songs, labels also want Apple to pay an upfront fee, and to pay out a percentage of the revenue it makes from the ads that will be used with the streaming service.

[via New York Post]


Apple’s low royalty rate offer for streaming music has record labels grumbling is written by Brittany Hillen & originally posted on SlashGear.
© 2005 – 2012, SlashGear. All right reserved.

Leap Motion and Double Fine team on Dropchord, give air guitar skills an outlet

Leap Motion and Double Fine team on Dropchord, give our air guitar skills an outlet

Emerging technology often needs a halo app to lure us in. For the upcoming Leap Motion controller, that app could come through the unusual (if welcome) channel of Double Fine’s Dropchord. The game’s exact mechanics are a mystery, but the music focus and exclusively gesture-based input should finally reward those who’ve spent years shredding invisible guitars. Gamers who don’t want to spring for a peripheral just to get one game will have the option of an iOS version sometime after Leap Motion gets first crack on May 13th. Knowing Double Fine’s reputation in motion gaming, the extra hardware just might be worthwhile — see Giant Bomb‘s proof after the break.

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Source: Dropchord

Report: Apple Is Being a Massive Cheapskate with Its Music Streaming Service

Of course this would happen. According to the New York Post, Apple is lowballing record labels for the rights to use their music in a new music streaming service. More »

Beats Project “Daisy” spins off with independent funding (without Apple)

Just last night there was a bit of an interesting “leak” of information leading the public to believe Beats streaming music project “Daisy” would be joining forces with Apple – as it turns out, they’re actually teaming up with a whole different party altogether. While it might seem like quite a stretch to think that the investment announced today would have had anything to do with Apple’s Tim Cook, there still may be room for the company to be in on this deal – however unlikely. The announcement today is for a $60 million dollar investment “led by” Access Industries (the industrial group founded by Len Blavatnik), Marc Rowan, James Packer and ”entities affiliated with Lee M. Bass”.

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The investment at hand will allow the organization known as code-name “Daisy” to spin off on its own as an independent group. Early in 2013 the Daisy project was announced to be headed by Ian Rogers (formerly of Topspin) as CEO and Trent Reznor (of Nine Inch Nails) taking command as Chief Creative Officer. Back in 2012, Beats acquired the digital music app and environment MOG for use by Daisy.

Using MOG as a foundation platform, Daisy will be taking off in late 2013. According to the official manifesto for the project:

“Daisy” is the internal code name for a new music service powered by Beats Electronics LLC. (Beats) that aims to solve the current digital music problem. Developed on the back of MOG, the premium subscription music service acquired by Beats in early 2012, “Daisy” will bring the emotion and cultural context back to music discovery for music lovers and provide a platform for artists to build a sustainable business.

We’re looking forward to seeing what musical forces such as those busting out in this project are capable of doing with already-established services like MOG and funding to that massive tune. If the Beats brand is any indicator, the project known as Daisy will be one to keep your eyes on – or ears, as it were.


Beats Project “Daisy” spins off with independent funding (without Apple) is written by Chris Burns & originally posted on SlashGear.
© 2005 – 2012, SlashGear. All right reserved.

Beats is either ‘in talks’ with Apple over new music-streaming service, or it’s just very good at marketing

Beats musicstreaming service is in either 'in talks' with Apple or just very good at marketing

Excuse us, but we find it hard to swallow some of the hype that swirls around the Beats brand. That sounds harsh, maybe, but it’s borne out of experience. Anyway, we do trust Reuters, and that outlet claims to have it on good authority that Beats is “in talks” with Apple over a partnership involving the forthcoming Daisy music-streaming service that was formerly MOG. The word is that Tim Cook attended an “informational” meeting with Beats CEO Jimmy Iovine and “expressed interest” in his business model — whatever that is — and that Apple’s head of Internet products, Eddy Cue, was also present.

In news that is very much related, Beats has also revealed that it’s managed to generate enough buzz around the $12 million acquisition of MOG to raise a further $60 million in investment to help it to launch the rebranded and hopefully expanded service as a separate entity later this year. It’ll be interesting to see how the newcomer plans to tackle the already-entrenched competition, possibly with curated playlists and other MySpace-style ideas, and we’re fully prepared to eat our skeptics’ hats if it succeeds.

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Via: VentureBeat

Source: Reuters

Apple reportedly in talks with Beats over music streaming service

According to sources said to be familiar with the situation, Apple‘s Tim Cook and Eddy Cue met up with Jimmy Iovine, the CEO of Dr. Dre’s Beats. The trio are reported to have talked about Beats’ planned music service codenamed Project Daisy, something it says is in reference to the first digital song. The talks weren’t about any sort of deal, however, instead spanning a wide range of topics about the service in general.

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Says the sources, the meeting took place last month in Los Angeles, with Cook being interested in learning more about Project Daisy. The Chief Executive, along with Apple’s Internet products head Cue, talked with Iovine about Daisy’s business model and how the service will be rolled out to consumers.

Project Daisy was announced back in January, but little is known about it in terms of details. This rumored conversation has taken place after reports that Apple is looking into starting its own music streaming service to complement iTunes, something that will put it in competition with the likes of Spotify and similar services.

Back on February 22, we reported that Google is allegedly looking into launching its own streaming service to complement its vast music offerings via Google Play. The information cropped up over at the Financial Times, which reports that the service will offer both free and subscription options, with free playback being ad-supported.

[via Reuters]


Apple reportedly in talks with Beats over music streaming service is written by Brittany Hillen & originally posted on SlashGear.
© 2005 – 2012, SlashGear. All right reserved.

Apple Talked to Beats About Beats’ Streaming Music Service

Reuters is reporting that Apple CEO Tim Cook had met with Beats CEO Jimmy Iovine about Beats’ upcoming streaming music service ‘Project Daisy’. Supposedly, Cook was interested in Project Daisy’s “business model and its rollout plans” and did not get into specifics about any deal. More »

Old Reel-to-Reel Tape Recorders Put to Innovative Use: Techno

Reel-to-reel tape machines are hugely outdated these days. Justifiable reasons to use them are dwindling. Unless you are like Wouter van Veldhoven, in which case you are a tape-machine wielding musical genius. More »

YouTube tipped to launch its own music streaming service

YouTube is rumored to be gearing up to launch a subscription-based music streaming service. The video-streaming juggernaut is hoping to become a fully-fledged media juggernaut in the future it seems. The service is said to have a free model which allows users to listen to all the music they’d like, but with ads popping up from time to time. It’s no different than when ads pop-up before/while you’re watching your favorite YouTube videos. A paid subscription would of course remove the ads for an uninterrupted music-listening experience.

YouTube is launching its own music streaming service

This YouTube music streaming rumor comes only a couple of weeks after it was rumored that Google is planning its own music streaming service. We’re unsure whether or not the Google rumors and the YouTube rumors are the same thing, but according to CNN, Google and YouTube may be setting up their own separate, music streaming services that offer the same features. YouTube is said to have its own negotiating team and own operating unit for its upcoming music streaming service.

Even without the music streaming service, the company is the most widely used medium for listening to music. Most of the top videos viewed on YouTube are music videos, and over 64% of teenagers preferred using YouTube to listen to music compared to any other music platform. Companies are also realizing that music streaming is the new future for gaining revenue. Warner Music Group received 25% of its digital revenue from music streaming services alone.

If Google and YouTube do launch their own subscription-based music streaming services, they have a lot of competition. They’re entering a saturated market. Spotify, Rdio, Pandora and many others already dominate the music streaming space, so Google may have a hard time getting its foot in the door. But considering it’s Google, the name itself may be enough to steal away users from the other services.

A YouTube spokesperson commented on this rumor saying, “While we don’t comment on rumor or speculation, there are some content creators that think they would benefit from a subscription revenue stream in addition to ads, so we’re looking at that.” Considering its YouTube and the amount of influence it has, its most likely going to follow through with a subscription music service.

[via CNN Money]


YouTube tipped to launch its own music streaming service is written by Brian Sin & originally posted on SlashGear.
© 2005 – 2012, SlashGear. All right reserved.

YouTube Music Streaming Service Coming This Year [Rumor]

YouTube Music Streaming Service Coming This Year [Rumor]

It was previously rumored Google could possibly introduce a music streaming service for its Android platform, and today, it looks as though a portion of that rumor is true as in addition to its Google Play for Android, it will be launching a music streaming service on YouTube.

According to a number of Fortune’s sources, the upcoming service planned to launch on YouTube will allow anyone to listen to music tracks for free with additional features available for a subscription fee. When reached for a comment regarding YouTube’s possible addition of a music-streaming service, the company shared the following statement:

While we don’t comment on rumor or speculation, there are some content creators that think they would benefit from a subscription revenue stream in addition to ads, so we’re looking at that.

If Gangnam Style has taught us anything it should be that K-POP is extremely addictive and people have been turning to YouTube for their music-listening needs for several years now. Maturing the brand to become a music-streaming service is one we’re sure many people would adopt as soon as it’s announced, which now that the cat may be out of the bag, would be soon.

By Ubergizmo. Related articles: Radio Buttons Found On Jailbroken iPad Corroborates iTunes Streaming Service Rumor, Apple’s Rumored Pandora-equivalent Radio Service Predicted For 2013 Announcement,