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It also faces a challenge in the emerging trend of direct licenses between record companies and digital services.
But Apple is seeking direct licenses with record labels that would give the company more flexibility in using music, according to the people briefed on its plans.
But while most such services operate under limited licenses that restrict what they can do with the music — for example, limiting the number of times songs by particular artist can be played within an hour — Apple is seeking direct licenses with record labels that would give the company more flexibility in using music, according to the people briefed on its plans.
"This our first foray into direct licenses.
Amazon has not (yet, at least) negotiated direct licenses with content owners for Cloud Drive.
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The case also touches on the somewhat obscure but contested issue of direct licensing.
Last week, SoundExchange, a nonprofit group in the United States that processes online royalties, made five deals, bringing the number of foreign countries from which it collects royalties to 22. Yet Sirius XM Radio recently has sought ways to avoid SoundExchange through direct licensing agreements with record labels, an effort that has proved contentious.
But longer term, the plan is for Soundtrack Your Brand to move to its own direct licensing deals with labels.
The company is also currently talking with major music labels (Sony, Warner, Universal) to sign direct licensing deals and stop relying on the SoundCloud API.
The company recently moved into direct licensing deals with music labels in order to build its own song library for its playlist creators.
The addition of technology, product, IP and people from Rdio will unlock opportunities for Pandora — including speed to market for their on-demand services, global expansion and direct licensing relationships.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com