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Apple iRadio’s Licensing Vs. Pandora’s Licensing

Google and Amazon can follow Apple’s example should they choose to launch their own radio services. Apple’s upcoming Internet radio service, unofficially dubbed iRadio, will differ from Pandora in how the music is licensed and the features embedded in the service. These differences will give iRadio a chance to differentiate itself from early movers in the United States and establish itself in other countries.

Apple has reportedly agreed to pay a per-stream royalty above what Pandora pays as well as a percent of advertising revenue (an undisclosed minimum amount of advertising revenue will be guaranteed). Apple’s per-stream royalty of 0.16 cents per stream is 33% higher than the 0.12 cents per stream Pandora currently pays for its free, ad-supported service under the Webcaster Settlement Act of 2009. (It pays 0.22 cents per stream for listening activity on its paid, subscription service.)

Read the full story: Billboard