In early September, the Wall Street Journal and The New York Times reported that Apple was creating a music streaming service to rival the likes of Spotify and Pandora. Now today, Bloomberg has reignited these rumors with a new report, stating that Apple’s streaming service may be coming in early 2013.
Apple Inc. and major music labels have intensified negotiations to start an advertising-supported Internet radio service by early next year, according to people with knowledge of the talks.
Talks are centered in part around how to share ad revenue and a deal could be reached by mid-November, with Apple starting a service within the first three months of 2013, said the people, who asked not to be named because discussions are still in progress.
It has been suggested that Apple was in talks with major music labels over the past few months, but that negotiations stalled the release of the service.
Streaming services like Spotify have copped much flak regarding how much they pay artists, so it will be interesting to see just how Apple overcomes this obstacle.
To show just how big Apple’s next move will be on the streaming industry, we can now observe Pandora’s stocks. Since this story broke a matter of hours ago, their stock value has dropped by more than 10%.