Apple is close, but not quite there, on music-streaming deals

Apple is hoping to have all things worked out before WWDC so they have something to announce, something that’ll hold people over for the next couple of months, especially if the rumors of no iPhone 5 announcement are, in fact, true.

Apple has already inked deals with EMI Music, Warner Music, and Sony Music, and rumors of Universal Media jumping in are already being heard. The problem with this? Apple is still in need of publishing rights, and it looks like they’ll get them, but as with everything in technology, we have to see all angles of the coin.

These are a few things that could hold Apple back from successfully putting out a full music streaming service. There’s only a few weeks left until WWDC, so the fact that Apple hasn’t inked deals with all of the major record companies could indicate trouble ahead.

The labels own the recording rights but not the publishing rights. For example the Beatles’song “Twist and Shout” would have to go through tremendous paper work were it dealt with as a single song. If digital retailers want to sell The Beatles’ cover of that song, they have to pay EMI Music and Apple Corp — the record company, not the computer company, Apple Inc. — for the sound recording of The Beatles playing the song. They would then have to pay the publishing company that represents Phil Medley and Bert Russell, the men who wrote the song in its entirety, a mechanical licensing fee. If the retailer wanted to sell a version of “Twist and Shout” by a different group of musicians, Medley and Russell would gain yet more money.

While money may not be a major thing for Apple, it still makes Apple jump over hurdles to introduce something like this since they don’t control it themselves, but rather have to first get permission to control it, in a sense.

Apple isn’t necessarily fighting, but they are definitely the middle men here. Kudos to them for trying to make way for new products and services while there is tension between the publishing companies and labels. How will this turn out for the end users? How will this play a part in the way we listen to music? When we find out, we will be sure to report it as quick as humanly possible.

Article Via CNET

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