Bloomberg has reported that Apple is planning on launching an Internet radio service in early 2013. The tech giant is currently in talks with record labels over how to distribute ad revenue generated by the service, which would function similarly to Pandora. A deal between Apple and the record labels could be reached sometime this month.
The nature of Pandora’s music license forces the service to limit things like how many times a user can listen to particular track or how often tracks can be skipped. The license Apple is pursuing would give users more freedom and flexibility in how they listen.
Apple is already the world’s largest music retailer, so developing an Internet radio station that would be integrated into its products and synched up to iTunes makes sense. It would also allow Apple to tap “in the car” radio listeners.