Several sources have confirmed that Apple’s new music streaming services called “iRadio” will be including Apple iAds in form of audio. iRadio will let users for a monthly fee listen to unlimited music (like Spotify already offers) and listen to radio and podcasts. John McDermott confirmed:
“The audio ads will be sold via iAd, Apple’s mobile ad network, according to a former Apple executive with knowledge of the situation, In addition to audio ads, the streaming music service will also contain the mobile ads iAd currently sells.”
About 10% of the revenue from the ads will go to the music right holders, which is much higher then currently other streaming services pay such as Pandora which gives 6% to the music right holders but its not as high as the 70% it gives now for a song purchase.
The iRadio rumours have been increasing over the last week since Warner Music Group has confirmed it has closed a deal with Apple on music rights and so have universal studios and Sony.
We could see a possible launch at WWDC which goes live on June 10.