Like Pandora, the service would let users create virtual radio stations based on an artist or song they choose. The service would then work as an app for a both iOS and Android devices as well as in web browsers, said the news outlet.
Apple has begun licensing talks with various record labels for the service. Pandora, by contrast, pays royalties through a general coffer, rather than striking individual agreements with each record company. But this has prevented Pandora from making a profit. In its recent quarter ended July 31, Pandora lost $5.4 million on revenue of $101.3 million.
If Apple negotiates its own deals with record labels it could also provide more interactivity in its service.
More adults use Pandora to listen to music than Apple’s iTunes, according to a recent Nielsen survey.
Apple is in a position to be a credible rival to Pandora, which boasts 54.9 million active users (Spotify has 16 million active users). By comparison, there are 400 million iTunes users or accounts.
Due to the negotiation process, Apple is not expected to launch the service for several months.
Source: The Wall Street Journal