Apple Streaming Radio Said to Challenge Pandora Next Year


Apple has intensified talks with major music labels to start an advertising supported streaming-radio competitor to Pandora by early next year, according to people with knowledge of the negotiations.

Discussions are centered in part around how to share ad revenue, and a deal could be reached by mid-November, with Apple starting service in the first three months of 2013, said the people, who sought anonymity because talks are in progress.

With sales of music downloads slowing, Apple and record companies want to create new ways for customers to discover and buy digital music. To challenge Pandora, Apple is seeking licensing pacts with labels that allow more flexibility about what listeners hear. Pandora, the internet radio leader, relies on a compulsory license that limits how often users can skip tracks and how many times an hour an artist can be played. Apple is also pushing for earlier access to new releases.

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