Apple Edges Closer To Streaming Radio Service

American reports of Apple's manoeuvring towards an online streaming radio service have exploded in recent weeks, with many sources reporting that the computing giant have signed – or are about to sign – deals with major labels Warner Music and the Universal Music Group.

Last week CNET reported that the deals were close, but negotiations with Sony and independent publishers were ongoing, and placed the service in direct competition with internet radio service Pandora. It is expected the service will offer expanded revenue streams which would include the ability for listeners to purchase songs heard on the playlisted radio service directly through iTunes. Australia is believed to be on the cards for the initial roll-out.

Even though rumours of an Apple streaming service – in different forms – have enticed the industry for a number of years, the weight of reports from American sources would indicate that there is truth behind the radio service. As recently as March the New York Times reported that the service would be delayed until the Australian winter. It is unlikely that Apple will offer a Spotify/Rdio/Mog-style on-demand music streaming service at this stage.

After the Apple reports spread, Pandora Media's American share price dropped 7.7 percent in the one afternoon, according to Deadline. The share price is still up considerably for the year at $12.9a after peaking at $14.27 in mid-March. It was at $10.00 3 January this year.

Locally Pandora's has hired its first employee with Australian Managing Director Jane Huxley confirming to AdNews that she's poached Fairfax Metro's Director of Mobile Rick Gleave to head up business development across Australia and New Zealand. Huxley is a former Fairfax digital strategist.