WSJ: Apple courting smaller labels for iTunes Radio (Updated)
According to the Wall Street Journal, Apple is looking to bring smaller music labels on board with iTunes Radio. Apple has reportedly offered deals to several labels, some of which are more generous than what competitor-to-be Pandora is offering.
The Journal says that Apple's payout to artists will be a combination of how often their songs are played (.13 cents per play) as well as 15 percent advertising revenue generated by Apple. In the second year, those numbers will jump to .14 cents and 19 percent respectively. According to the Journal, Pandora pays out .12 cents per play.
Update: The correct amount as reported by the WSJ was .13 cents, not .13 dollars. We apologize for the error.
Apple, of course, had no comment.
The forthcoming iTunes Radio was announced during WWDC 2013, and will offer customized, streaming radio stations to users for free. Apple plans to launch it this fall.
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