If you were paying attention this week, you would have realized that Google actually beat Apple to the music streaming punch when they released a music service called All Access at the Google I/O conference 2013.
The same thing happened in 2011 when both Google and Apple were rumored to release cloud storage services and Google also beat the fruit company, announcing theirs first.
The last thing we heard about Apple’s proposed iRadio service was that it was going to be released in the Summer as long as Apple could finalize a deal with label execs. Apple was rumored to of initially been offering labels 6 cents per 100 songs streamed, which is about half as much paid by Pandora. Now, however, it was rumored that in order to start moving things along Apple has bumped up its offer to 12 cents per hundred songs streamed and also a small portion of its ad profits.
If you are wondering just how Google was able to release its music streaming service first, The Verge has the answer. They wrote an in-depth article on just how Google was able to reach a licensing deal with major record labels before the fruit company.
How was Google able to secure deals for All Access, which was unveiled at Google I/O on Wednesday, while Apple has been stymied? For starters, Google chose to offer a standard subscription music service very similar to those built by Spotify and Rdio, and that meant the terms had largely been established, according to multiple sources close to the talks. Apple, on the other hand, is pioneering a hybrid web and radio service — one that resembles Pandora but melds it with some on-demand features, the sources said. The licensing agreement had to be created from scratch.
The article also mentioned that another thing Google had going for itself was that it was willing to pay advances to some of the major copyright owners. Typically Apple has a long history of refusing to pay advances and — at least initially — didn’t offer any.
If Apple wants to unveil a music streaming service at the WWDC 2013 it certainly better get its act into gear. Right now the only major label that has signed with Apple is Universal and that means Sony, Warner and BMG are still waiting to be offered a more lucrative deal.