Apple is said to be closing a deal with two major record labels to create an app called iRadio, a music streaming service, which claims to be much better than what Pandora offers. Pandora is a music streaming service that is only available in three countries: the U.S., Australia and New Zealand.
According to sources close to the negotiations, Apple could get a much cheaper and far more profitable deal, as it would offer more forms of income.
This new app has been unofficially called iRadio, the service would be tied to iTunes and would be available on mobile devices. According to reports the service “includes a quick way for consumers to buy a song they hear, potentially boosting download sales from iTunes, as well as a revenue share of new audio ads Apple is planning to add to the free service.”
With news all over the net sources suggest that Apple is reportedly close to signing deals with Warner Music and Universal Music Group. We have yet to see if the deal will include Sony Music.
In February rumors of a music streaming service roamed the web, but from another technology giant, Google. The information indicated that the Mountain View company were also negotiating with several record labels.
So far Apple has not commented officially.