Apple’s iRadio service may be better for music labels than Pandora [Report]

iTunesA new report from CNET today has detailed Apple’s negotiations with record companies over their rumored iRadio service, saying that the deals being made may be much sweeter for the record labels than Pandora’s.

We have recently heard that this new service would be coming around Summer time, and it looks like Apple is moving proceedings along to meet this release time.

In this report, CNET claims that the service is similar to Pandora, rather than Rdio and Spotify, in that it doesn’t offer on-demand listening. It is said that the service will bring forward some new features, such as the ability to jump back to the beginning of a song.

That includes a quick way for consumers to buy a song they hear, potentially boosting download sales from iTunes, as well as a revenue share of new audio ads Apple is planning to add to the free service, according to sources.

In addition to this, it is said that the service will be tied to iTunes, and available for mobile devices, such as iPhones and iPads.

Furthermore, CNET claims that Apple is planning to roll out the service as quickly as possible, introducing it to up to a dozen territories, such as the U.S, the U.K, France, Australia, Germany and Japan.

While ‘iRadio’ is the name given to the service by the press, Apple seems to be referring to it as its “new streaming service,” says CNET’s source.

However, while these details are emerging, giving us more insight into this new service, there is much still to be revealed. Advertisements look to be a large part of the service, as is seen across competitors such as Spotify and Rdio. They both work on a system of pay-per-listen, where users listen to a song, either paying for the service monthly or listening to ads, and then the record labels are payed based on what songs are listened to.

This service may very well rely on Apple’s iAds platform, which provides ads on mobile devices, but CNET’s sources are detailing something completely different, “a full-on, multinational sales force that would sell audio ads akin to what Pandora serves up for listeners to its free service.”

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