November 1, 2012

Apple in Talks to Launch Internet Radio Service

Apple has been looking to find ways to break into the online-radio industry in order to become an even greater presence in the digital music industry that it already is.  This seems like the right move to make considering they already dominate the mp3 player market with their iPods, and their iTunes store streamlines the process of taking it from your computer to your device.  Like all things apple, their internet radio service would be proprietary – meaning that delivery would take place though an apple endorsed product or program, instead of relying on a traditional web browser based medium.

Their biggest competitor Pandora would likely see some of its customers lost, if every goes the way Apple intends it to.  There are, however, licensing issues that need to be overcome in order to strengthen profits through advertising.  Pandora is subject to steep licensing fees by artists and their label; something with doesn’t have as big an impact on let’s say, other satellite radio services.  If Apple could come to an agreement that softens licensing issues, they stand to make a huge profit while boosting sales of apple products used to access their internet radio.  Apple recently met with executives from major labels to discuss how profits from advertising could be shared among them.