Apple Web radio stalls over music rights
Monday October 1, 2012
From The Columbus Dispatch
The rough news for Apple lately is not just about its much-derided new maps program.
Apple’s plans for an Internet radio service have hit a snag over the licensing of music controlled by Sony/ATV, which recently became the world’s biggest music publisher.
The two companies are at odds over what rate Apple should pay to stream Sony/ATV songs on its service, a money standoff typical of such negotiations.
But what is new is that Apple needs to negotiate at all. Typically, streaming services have obtained publishing rights from the major performing-rights organizations, ASCAP and BMI, which for decades have acted as clearinghouses on behalf of publishers and songwriters.
In recent years, some music companies have moved away from that model, figuring that the returns would be better if they handled licensing directly and opted out of the blanket rates set by those organizations.