Apple to launch a digital radio service

Apple is set to launch a digital radio service with customised listening and on-demand functionality, according to The Wall Street Journal.

The technology giant is thought to be negotiating terms for digital music rights directly with publishers. MediaPost claims that royalties could be an issue for Apple as costs more than outweigh advertising revenues.

Reports suggest that Apple may offer a subscription model for the service; and will aim to get consumers to purchase songs through iTunes.

A digital radio service from Apple would compete against Pandora – a free personalised radio service in the US, which has around 150 million registered users.

Pandora’s share’s fell to as low as $9.95 following the news that Apple is planning to launch a similar service. Apple shares, meanwhile, rose 0.6% at $688.44.

Read the full MediaPost article here.