Until now, Apple’s iTunes was the most undisputed king when it comes to downloading music. But not anymore as streaming music service has become a front runner in the lives of millions of consumers. Big names such as Spotify and Pandora have become the front runner in the world of web-based music streaming. Apple who earlier tried to acquire Pandora, but negotiations fell flat, is now finally making its own baby-steps in the web-based music streaming. Multiple reports suggest that Apple will come up with iRadio, a web –based music service this summer.
Apple has significantly progressed with its iRadio service, and will likely to be rolled out this summer, sources close to The Verge. Both Universal and Warner, world’s record labels, are optimistic about Apple’s new venture. It is said that these web –based music streaming services have proved worthy in the eyes of record labels. Recently, The New York Times reported that Apple wants to pay 6 cents per 100 songs. While Pandora currently pays 12 cents per 100 songs. Music –streaming service—Spotify paid 35 cents.
In 2012, music industry generated $7.1 billion in sales in US. It is nearly half, when compared to the revenue in the early 2000s, as per Recording Industry Association of America (RIAA). The association further says that revenue from digital sales that includes (Spotify, YouTube, and Rdio) now make 15 per cent of the total revenue generated in the 2012.
It is believed that currently these music –streaming companies are not making money. At this rate, they simply can’t make money in regards to advertising, and royalties being paid to record labels. Apple has a fair chance to make web-based music streaming business viable. The tech giant already owns iTunes – world’s biggest music market place. Everyone knows that Apple has a reach with its hardware as well as with iTunes music store. So getting into music –streaming game is an integral part, and a safe bet to ignite brick sales. One such report also claims that iRadio will be free, as Apple has set advertising revenue model, to get its new venture profitable. It would be exciting to see whether Apple announces such music streaming service this summer.
Indian music scene has also witnessed growth with the rise of digital platforms. In the recent month’s web –based music streaming made prolific progress. Gaana, Saavan, and Dhingana are some of popular streaming services that can easily compete with Spotify. Apple now has its iTunes service in India, and Google also announced YouTube video rentals. The coming of such digital platform signals rise of digital music scene in India.