Apple Will Sell Ads On Radio Service Online: Apple is preparing to sell audio ads on a streaming music service, which aims to raise awareness in its developer conference next week.
According to people familiar with the plan, is against Google Inc and Pandora Media Inc in the increasingly competitive market for mobile tunes.
The iPhone maker has been working to develop a music streaming service for the past year, has contacted some of its largest advertisers, but it has started selling the service widely, however, one of the people said.
The music service, called “iRadio” for the technology industry and the media are expected to closely resemble Pandora Music on your monetization strategy. There will be audio ads and banner sold through Apple’s iAd mobile network, said people who were not authorized to speak publicly.
The service, expected to launch later this year, will also advertisements are currently sold iAd division, said.
When finally launched, Apple will become the latest entrant to a stadium that sources say technology giant Amazon.com Inc on Facebook have considered joining.
It is unclear what features will the service, while Wall Street analysts and tech blogs speculate that will, like Pandora, operate just like a online radio station that broadcasts a selection of music based on the preferences of the users.
Mobile device manufacturers see a music streaming service feasible as crucial to ensuring users remain true to its mobile products. About 48 percent of smartphone users listen to music on your device, making it the fourth activity related to the most popular after the social networking, games and news, according to a survey released ComScore mobile behavior February.
Clinging to users is the key to Apple, you get part of their income from selling Lions devices rather than the sale of digital content, such as songs and TV shows. It is expected that the new music service advertising Apple, which pioneered and now dominates music purchases through iTunes, freedom of users. The other business model – adopted by rivals Google and Spotify – is an ad-free subscription model where consumers pay a flat fee for listening time.
An Apple spokesman declined to comment on the audio ads to streaming music service, which was first reported by industry publication Advertising Age.
It is expected that the Worldwide Developers Conference Apple, which starts on Monday, to show the latest enhancements to its iOS mobile operating software. Also used the issue in the past several days to showcase their latest Macintosh computers.
Apple has made selling ads for the new streaming music service of a focus for its iAd unit, which will continue to sell regular mobile ads. Sale of big brand campaigns to advertisers would be a key priority for the unit, the people said.
To ensure broad content service debuts, Apple has been running ink deals with the music industry. Apple has deals with Warner Music Group and Universal Music Group, but is in talks on music rights with Sony Music Entertainment and independent publishing arm, Sony / ATV.
Streaming music is still a nascent market, dwarfed by music sales through outlets such as iTunes, but one that is attracting investments. Streaming music service Apple will compete with popular existing services like Spotify and Pandora, which has about 70 million active listeners.
The rising cost of licenses has forced Pandora, whose revenue comes primarily from advertisers, to introduce a limit of 40 hours of free listening on mobile devices. A subscription of $ 3.99 is necessary to venture beyond this limit.
The other player with a lot of money to start offering music streaming service is Google with their “All Access” which allows unlimited listening for $ 9.99 per month. It launched its service last month, ahead of Apple.
Pandora shares have plunged 17 percent this week, reports circulated that Apple was about to announce its rival service.