There have been many different report and rumours about Apple signing various deals with the major music labels, but finally Apple has closed the last deal with Sony and now iRadio can finally surface in the next version of iOS. This means that it is completely possible that they will have a working version of iRadio at WWDC but not the final version of either iRadio or iOS 7.
Apple has been in negotiations with the music labels since last fall. The dispute with Sony was over whether or not they still got paid for serving songs to listeners even if they didn’t end up hearing the song; for instance if they skipped the song. Apple is expected to announce the service with full iAds support, also some of the rumoured features include automatically generated music based on your taste in music.
This service will break into the market with a bang so Spotify, Rdio and Pandora better up their game if they want to keep their users from leaving. iRadio is supposedly going to be built in to the iOS 7, so there’s no reason not to use the new service that will be completely free but will have iAds on the service.