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Apple new streaming service to include Audio Ads

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.