UPDATED: Apple To Launch Free Music Streaming In Early 2013, Pandora Stock Continues Fall
UPDATE: Pandora stock continued to fall on Friday morning, down another 3% to $7.96 as of 11:15 ET. Sources suggest that at least one major label is not eager to concede to Apple's requests and is seeking a substantial advance payment.
Apple is planning to launch a free ad supported Pandora-like online music service in the first three months of 2013. Current negotiations with labels are focusing on differentiating features and how to share ad revenue. The talks could be completed next month according to Bloomberg.
Pandora and other online radio services operate under a compulsory license that governs how many times per hour an artist can be played, as well as, how often they can skip tracks. Apple is negotiating direct licensing deals with labels that would allow more flexibility and additional features including offline caching and earlier availability of new releases.
Pandora stock, already battered by previous rumors of Apple's plans, fell another 111.73% on Thursday, down $1.09 to $8.20, off a 52 week high of $15,97.
While neither company would comment on today's report, Apple CEO Tim Cook has been beefing also up the company's mobile advertising group and exploring opportunities beyond radio to integrate ads within other Apple services.
More from Bloomberg: