Is Apple negotiating a US$19m deal with Drake?

UPDATE: Drake and Pharrell Williams have both been confirmed for Apple's music relaunch. Sources familiar with negotiations have told Billboard they will take part but it's unclear in what propensity. sources have denied a multi-million payment.

Apple is reportedly negotiating a US$19 million deal with Drake for its rebooted iTunes Radio.

The New York Post is reporting that the tech giant is in talks with Drake, David Guetta and Pharrell Williams over contracts which would see them involved with iTunes Radio and act as guest DJs.

Williams is already helping to promote Apple products, having worn a US$10,000 gold “Edition” Apple Watch on the US version of The Voice last month. Drake was also seen wearing a yellow gold version of the Apple Watch, at Coachella (pictured).  

In November last year, Guetta partnered with Chase Card Services (Visa) and Apple Pay to give account holders a complimentary pre-release of his sixth LP Listen.

Drake, Williams and Guetta are not among the 17 artist owners of Jay Z's streaming service Tidal.

The financials of Apple’s deals with Williams and Pharrell weren’t estimated by the New York Post and it’s unclear how many other artists are also negotiating with Apple.

The report follows Apple’s hiring of DJ for BBC Radio 1 Zane Lowe, who finished his last show on March 5 to move to Cupertino, US to take up an unannounced role with Apple.

Apple launched iTunes Radio in September 2013, the free ad-supported service was made available in the US and Australia only. Reports of an iTunes Radio refresh surfaced late last year when it was revealed Apple would relaunch its acquired streaming service Beats Music.

Beats Music, likely to be rebranded Apple Music, and iTunes Radio are expected to relaunch at Apple Worldwide Developers Conference on June 8. Apple Music will reportedly launch with a three-month free trial period for its $9.99-a-month subscription service.

Apple Music’s technology looks to take on streaming’s giants Spotify, Pandora and YouTube. It will use Beats technology, look, and curated playlists compatible with both Apple and Android devices. Users will be able to search through both the Beats and iTunes catalogues at the same time, and select whether they want to buy a track from iTunes or stream it. It will apparently also have Ping-like social networking functions allowing users to post messages and music recommendations; an Artist Activity function to allow artists to share track samples, videos, photos and release/concert news; and a destination called Apple Connect, where users can post video YouTube-style content.

Apple is still working to complete deals with labels ahead of the launch of the streaming music service and according to the New York Post is after free licensing during the three-month trial period.

Apple’s dealings with the label sector caught media attention last month when rumours surfaced that Apple was pressuring record labels to cease deals with streaming services which have ‘freemium’ platforms.

It was reported the European Commission and the US Department of Justice have become involved. The EU began an antitrust investigation into Apple’s licensing deals in early April when negotiations for a $7.99 – and initially $4.99 - Beats service began. Apple Music eventually raised its price to the now sector-wide $9.99. DoJ officials are reportedly running their own investigation and according to The Verge have interviewed “high-ranking music industry executives about Apple’s business habits.”

Image: Drake sporting an Apple Watch at Coachella
Source: Instagram