Beats headphones made by Beats Electronics are seen on display in Los Angeles, CA on May 9, 2014. AFP PHOTO / ROBYN BECK
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More than a decade ago, the late Steve Jobs pulled one of his trademark reality distorting maneuvers, browbeating music label executives into selling songs on Apple Inc's then-nascent iTunes digital store for a mere 99 cents apiece.With digital music downloads in decline, record labels have put pressure on Apple to get its act together on streaming, according to two of the three sources. The record labels hope Apple can turn Beats Music into a strong competitor with Spotify and other streaming services, the sources said.Streaming subscriptions are now the fastest-growing revenue source for the music industry, but Apple has not made a dent.Apple, Beats and record labels Warner Music Group and Sony Music Entertainment declined to comment for this story.If the labels do not agree to lower royalties rates, then, like Pandora or Spotify, Apple may struggle to make its streaming profitable.Getting Iovine on board will give Apple huge leverage across the negotiating table as streaming develops. He will likely leave Interscope records and join Apple, according to two sources.
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