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# Apple’s ‘Pandora Killer’ Halted By Licensing Complications With Sony/ATV
- URL: https://www.hypebot.com/apples-pandora-killer-halted-by-licensing-complications-with-sonyatv/
- Published: 2012-10-01T13:23:49.000Z
- Updated: 2012-10-01T13:23:49.000Z
- Description: Apple’s rumored Pandora-like music streaming service has run into a licensing roadblock, derailing a launch that reportedly was scheduled to coincide with the iPhone5’s debut. According to information obtained by. Continue reading [https://www.hypebot.com/hypebot/2012/10/apples-pandora-killer-halted
- Author: admin
- Tags: Apps, Mobile & SMS, Songwriting & Music Publishing, Streaming, #wp, #wp-post, #Import 2026-01-21 10:49

[![AppleSony](http://hypebot.typepad.com/.a/6a00d83451b36c69e2017ee3e5d674970d-150wi "AppleSony")](http://hypebot.typepad.com/.a/6a00d83451b36c69e2017ee3e5d674970d-popup?ref=hypebot.com)

Apple’s rumored [Pandora-like music streaming service](https://www.hypebot.com/apple-developing-pandora-competitor-could-launch-this-year/) has run  
into a **licensing roadblock**, derailing a launch that reportedly was scheduled to coincide with the iPhone5’s debut. According to information  
obtained by the New York Post, **Sony/ATV** (the world’s largest music publisher) **wanted**  
**Apple to pay a higher fee** for each song played on its service than the  
Cupertino-based company was willing to pay. In contrast to Pandora and others  
who pay publishing royalties on a statutory and tenths of a penny rate, Apple is  
instead looking to establish a more complex and direct payout method.

  
Part of this licensing complexity stems from the fact that  
Apple’s streaming licenses would allow their service to play a “selected artist  
more times” than Pandora can under the statutory agreement, according to the  
[New York Post](http://www.nypost.com/p/news/business/sony%5Fbites%5Fapple%5FkKe2i0rFHlCbeFRq5cJeiO?ref=hypebot.com). Additionally, Apple needs more flexible licenses considering  
that it will be pointing people directly to its iTunes store to generate sales.

This rejection from Sony/ATV to Apple comes as the publisher  
recently announced that **they are pulling out of both ASCAP and BMI** in January  
(digital only), which means that Pandora and others will only find more  
difficulty in negotiating future rights deals. Now with EMI under its umbrella,  
Sony/ATV is said to administer two million copyrights from artists like Taylor  
Swift, One Direction, The Beach Boys and The Beatles.

Apple is also working to become a more favorable potential  
revenue generator for labels. In contrast to Pandora, which delivers songs  
based on algorithms, Apple is reportedly talking to a number of labels to  
include an element of promotion based on what they are pushing in any given month.  
This is certainly an interesting move considering that labels aren’t typically  
impressed with revenue generated from streaming services that work under the  
standard statutory rate like Pandora. In fact, many believe that these services  
cannibalize music sales. Regardless of what labels think of streaming services as viable income generators, they're likely going to go along with whatever Apple has in store anyway considering how massive of a reach and user-base the tech giant has.

Should these talks with rights holders not go through, it is  
worried by some (mainly publishers) that Apple will launch under the same statutory  
rate that Pandora pays, leaving little profit potential. Negotiations are said to be ongoing at this time, and we'll be sure to keep you updated as more develops.

—

***Hisham Dahud*** *is a Senior Analyst for Hypebot.com. Additionally, he is the head of Business Development for [Fame House](http://famehouse.net/?ref=hypebot.com) and an [independent musician](https://soundcloud.com/hishamdahud?ref=hypebot.com). Follow him on Twitter: [@HishamDahud](http://twitter.com/hishamdahud?ref=hypebot.com)*