 RAIN 2/22: Apple subscription policy "could delay Pandora IPO," reports NY Post ·Feb 22, 10:29 AM BUT NEW JOBS EMAIL THROWS CONFUSION ON HOW SOME SERVICES WILL BE AFFECTEDApple’s controversial App Store subscription policy — already drawing fire from Last.fm and Rhapsody and causing the FTC and Justice Department to begin preliminary anti-trust investigations — could hurt Internet radio leader Pandora. The New York Post reports Apple’s new policy could even delay Pandora’s IPO.
That’s according to an unnamed source “connected with one of the underwriters of Pandora’s public launch.” The source said, “Apple has crossed the line. They are either going to have to walk this back, or face enforcement action or a lawsuit.” The problem stems from two requirements from Apple. The first is that Apple gets 30% of any subscription made within an iPhone app. That apparently includes subscriptions to newspaper services, to radio services like Pandora or Last.fm, or even to aggregation services like Readbility (which just had its app denied over this policy). The second is that any service that offers a subscription, even outside Apple’s realm of control, must offer the same subscription at the same price within their iOS app. So Pandora and other services don’t get to decide whether an in-app subscription makes fiscal sense for them — it’s a requirement. However, it’s not yet clear how Apple will apply this policy. A recent email from Steve Jobs implies some services will be exempt, as Wired reports (here). “One thing is clear, however,” writes Wired , “if Apple does charge music subscription services 30 percent for selling their subs in iTunes, they will almost certainly lose money on each subscriber.” Rhapsody has said they will lose Why would Apple pursue a policy so apparently harmful to its developer community? “There is broad fear among music services that Apple is trying to squash them ahead of launching its own similar service,” writes the Post. Read more here. TECH LIKE NET RADIO HELPS DRIVE UP AFTERMARKET CAR AUDIO SALESNew technologies like Internet radio helped drive up aftermarket car audio sales in 2010 “for the first time in years and will probably do so again this year,” writes Twice.com.
Aftermarket car audio sales rose by over 11% in 2010, the Consumer Electronics Association (CEA) stated, “following 3 consecutive years of double-digit declines.” Rob Elliott, the executive director of car stereo buying/marketing group In Car Experts, said that “momentum will continue in 2011 with the dramatic expansion of Internet radio into a wider range of head units at more affordable prices.” Twice.com has more coverage here. SLACKER DISCUSSES NEW LATINO CHANNELS Slacker earlier this month launched new pre-programmed Latin channels. Programmer Jackie Madrigal tells EFE, “The increase in Spanish-language radio stations is a trend related to the growth of the Hispanic population in this country.” Fox News picked up the story, which you can read here.
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CommentCommenting is closed for this article.  Other stories RAIN has upgraded (and moved)! RAIN 9/13: RAIN Summit Chicago takes place today! RAIN 9/12: First Summit in RAIN's hometown takes place tomorrow RAIN 9/9: Summer holidays, "doldrums" impact July Webcast Metrics, but audience up over last year RAIN 9/8: Clear Channel launches new customizable iHeartRadio beta; RAIN goes hands-on RAIN 9/7: Meet more speakers you'll hear at RAIN Summit Chicago in less than a week RAIN 9/6: Clear Channel taps The Echo Nest to take on Pandora RAIN 9/2: RAIN reviews Spotify's radio-like product Artist Radio RAIN 9/1: UK online radio aggregator Radioplayer campaigns b'dcasters to create "all radio" ratings RAIN 8/31: Execs from Merlin, Triton Digital, jacAPPS and more to appear at RAIN Summit Chicago |
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