Apple's music streaming service will be based on Beats Music with curated playlists and cloud-based libraries. It's expected to cost about $7.99/month, cheaper than Spotify and Rdio.
The service was initially planned for launch earlier in 2015, but was delayed by the departures of key employees, as well as difficulties integrating Beats human and technology resources into Apple. Some Beats executives such as Bobby Gaza, who was a Senior Vice President at Beats in charge of technology, have departed Apple in recent weeks. The new Apple-made service will also make way for Apple’s first entirely-in-house Android application, but sources say that delays to the Android app are also possible as some of Apple’s Android developers have also left the company.
Apple could decide to launch its music service as part of iOS 8.4, following WWDC; however, it could also be delayed until the release of iOS 9 in the fall. The service will be integrated into the default Music app on the iPhone, iTunes for Desktop, and as part of a new app for the Apple TV.
Notably, sources say that Apple is still working on a slimmer Apple TV with a more capable tactile remote, a redesigned operating system, and an App Store. The new device could also get more content as Apple is rumored to be in talks with TV programmers about an 'over the top' pay TV service. It's also been courting HBO to get HBO Now, a online subscription offering that will cost $15/month.
It's unclear when Apple will be ready to launch a new Apple TV but you can follow iClarified on Twitter, Facebook, Google+, or RSS for updates.