Streaming iTunes has yet to get music licenses: sources
updated 01:10 pm EDT, Fri July 2, 2010
Remote iTunes sharing may not have deals yet
Apple's remote iTunes streaming may indeed be in development but is waiting on music licensing deals, tips revealed on Friday. It has talked with the top four labels but supposedly doesn't have the deals it would need. The iPad producer could already stream from a user's iTunes collection through the Internet without a license, CNET understands, but it would need to do more to stream directly from its own servers.
Executives at the studios may not have even seen all the details yet, making it difficult for them to gauge the viability of the deal. Apple couldn't simply transfer Lala's old licenses for remote streaming as those terms specifically ruled out a license transfer in the event of an acquisition.
Apple is thought to be pressing hard for streaming rights as it would give parity or an edge against Google's new Android streaming features. It would equally reduce the amount of storage space needed for music and videos on handhelds, taking care of some of the effect of limited flash memory on the iPad and iPhone.
Fresh-Faced Recruit
Joined: Oct 2003
Lala license
"Apple couldn't simply transfer Lala's old licenses for remote streaming as those terms specifically ruled out a license transfer in the event of an acquisition."
OK, fair enough, that was in Lala's contracts. But why was the RIAA so eager to do it with a startup like Lala, but hesitant to do it with Apple? Some may say that they are afraid of the power that Apple wields in the music industry these days, but I think it comes down to pure, unmitigated greed on the part of the record labels. I am sure they are shooting for the moon when it comes to royalty payments for iTunes streaming, and it will be up to Apple to keep it in the realm of feasibility.
But still, it was such a crock that they gave Lala carte blanche to do it, and are holding up Apple from doing the same. Mostly, I am still sore that Lala is gone. That was a fantastic service, and was one day going to put iTunes out of business had Apple not bought them out.