Apple could be making a big leap in the music streaming universe with iRadio, with the possibility of a free service backed by iAds. This does seem quite unusual for Apple, a company who take pride in overpricing for the luxury.
However, Apple have reportedly met with all three big music labels and sold their idea of the iRadio music service. iAds would allow labels to sink into the 500 million user accounts with relevant song choices, which could lead to more iTunes sales.
The move does seem clever and if the music labels will trust anyone, it is Apple. iAds have not been the success Apple was hoping for, with only 15% of all ad revenue coming from the ad service.
This may all change with new initiatives for ad exchanges and other incentives for businesses to use iAds. We expect Apple will become more flexible with placement and usage of ads on the iOS service in the future, as Tim Cook said at the D11 conference.
iRadio will hopefully be announced at WWDC, although it may have a different name and may run a different business model than the one reported. We will have to wait and see, WWDC 2013 begins on June 10.