The company is expected to unveil the new service at WWDC; however, it likely won't be available to the public until later in the year. Earlier this week, it was reported that Apple has struck a deal with both Warner Music Group and its publishing arm Warner Chappell; however, is still working on finalizing negotiations with Sony.
In order to support the service, Apple plans to sell ads to generate revenue that will be shared with music companies.
Apple’s sales team is now directing its attention to getting big brands to support the radio service, with revenue to be shared with music companies. Some members of the iAd group, which has more than 200 employees, have long sought tighter integration with iTunes so the group could sell ads to entertainment companies that would link directly back to iTunes, said one former iAd member.
Even as it emphasizes the music products, Apple will continue to sell ads to be carried within apps. One of the most successful pieces of the iAd platform lets app makers advertise to attract more downloads, a program called iAd for Developers. Last week, Apple’s Cook said in an interview at the D: All Things Digital conference that advertising isn’t a core business for Apple. The service was intended to make money for developers, he said -- not Apple.