Apple is rumored to be about to launch its own music streaming service to rival the likes of Spotify.
iRadio, as the new service will reportedly be called, could be set to launch later this year and talks with music companies Universal Music, Warner Music and Sony are already underway.
The service will reportedly be free and paid for by advertising with users being able to download songs from the iTunes store.
Music downloads is huge market and subscribers to services such as Spotify and Pandora have increased by 44 per cent last year.
Music analyst Alice Enders told the Guardian that the new Apple service is most likely to challenge Pandora, which claims to be used by a third of the US online market.
She said: “It’s a big decision for the recorded music industry whether Apple should become a subscription service; the all-you-can-eat service seems to be the nirvana for the music industry even though there is the potential to cannibalise download sales.”