According to a report from Bloomberg, Apple will launch an online streaming radio service in the first quarter of 2013. The service would compete directly with the likes of Pandora and would be ad-supported. If they follow the business model of others, a premium ad-free version will be made available.
This news comes as discussions between Apple and major music labels have intensified. Sources indicate the negotiations over the ad revenue share paving the way for a deal to be completed by November.
Executives from Universal Music Group, Warner Music Group and Sony have been visiting Apple’s headquarters in recent weeks to learn more of Apple’s new streaming radio service.
These services could expand sales of music in the iTunes Store.
Source: Bloomberg
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Does Apple rely on advertising anywhere else or will be the first time using that model? Should we expect to start seeing advertising everywhere? Seems to me advertising has not place in a high price luxury product.