New iRadio Ad Details Surface Ahead of Expected Launch Next Week

Following a report earlier this week that suggested Apple's iAd staff would be responsible for securing advertising deals to support Apple's upcoming streaming music service, AdAge has confirmed the rumor and released new details on how the upcoming service, dubbed "iRadio," will function.

AdAge claims that iRadio, which Apple plans to offer to users for free, will incorporate both audio ads and standard mobile ads, all of which are highly targeted. Numerous reports on iRadio have suggested that Apple has tried to negotiate lower rates and more flexibility than has been offered to competitors like Pandora, leveraging its advertising reach and its iTunes store.

Selling interstitial audio ads – ones that play between songs – will allow Apple to offer the service free to users as is typical with most streaming music services. One music industry executive familiar with the negotiations between Apple and the major record labels said the terms of iRadio are more favorable for record labels than other streaming services because iRadio is expected to drive more song downloads.

iRadio users will be able to purchase the song they are listening to through iTunes. Syncing with iTunes Match ($24.99 per year) will allow users to own those songs forever, keep them in Apple's cloud-based storage service and access them on any iOS device. However, the service will not allow users to search for and play a specific song on-demand, like with Spotify.

While 70% of current iAd revenue is given to developers who utilize the service, Apple will be able to keep 90% of revenue from audio ads, sharing just 10% with music companies. Presumably, audio iRadio ads will function similarly to those offered by Pandora, playing in between songs.

pandoraads

An example of the ads found in the Pandora app

Apple will also be able to charge higher advertising rates than competitors like Pandora, as Pandora's ads can only be targeted to users based on sex, area code, and listening habits, while Apple can target users based on several other factors, including entertainment tastes that include movie, television, and app preferences.

Last week, it was reported that Apple is considering launching an ad exchange, possibly within iAd, which is in line with the advertising information provided by AdAge. With an ad exchange, Apple could allow advertisers to target Apple users based on a number of data factors that Apple has collected about its customers. Companies like Google and Yahoo currently operate ad exchanges and an Apple exchange could greatly increase the popularity of its iAd program.

According to the latest iRadio rumors, Apple is pushing to complete deals with record labels in order to launch the streaming music service at its annual Worldwide Developers Conference, which is scheduled to begin on June 10.

Top Rated Comments

neuropsychguy Avatar
143 months ago
We want FREE, not ads! We get ads on radio all the time!
So who exactly will pay for the music to keep it free for you? Nothing is ever free.
Score: 13 Votes (Like | Disagree)
ghostface147 Avatar
143 months ago
I have never used a streaming service, but I think that not being able to find a song you want to play at anytime sucks.
Score: 10 Votes (Like | Disagree)
SilentLoner Avatar
143 months ago
If its not like spotify then im not that fussed about it tbf
Score: 10 Votes (Like | Disagree)
Dekema2 Avatar
143 months ago
We want FREE, not ads! We get ads on radio all the time!
Score: 8 Votes (Like | Disagree)
iksretep Avatar
143 months ago
that's just great...

another button for a service I (don't use) and won't be able to remove. I know I know, I can tuck it in to a folder, but I happen to be a neat freak :D
Score: 6 Votes (Like | Disagree)
HiRez Avatar
143 months ago
Can't pull up a song you want? Screw that. And I hope there is a way to opt out of ads for a fee?
Score: 6 Votes (Like | Disagree)

Popular Stories

iphone se 4 modified flag edges

When to Expect the Next iPhone SE to Launch

Friday May 17, 2024 2:03 pm PDT by
It has been over two years since Apple released the third-generation iPhone SE, and rumors continue to surface about a new model. The latest word comes from The Information, which today reported that Apple plans to release a new iPhone SE with a design similar to the standard iPhone 14 in the spring of 2025. If this rumor is accurate, the iPhone SE would finally gain Face ID and a notch...
iOS 17

iOS 17.5 Bug May Also Resurface Deleted Photos on Wiped, Sold Devices [Updated]

Friday May 17, 2024 12:24 pm PDT by
A bug in iOS 17.5 is apparently causing photos that have been deleted to reappear, and the issue seems to impact even iPhones and iPads that have been erased and sold off to other people. A Reddit user wiped an iPad following Apple's guidelines in September of 2023 before selling it off to a friend. That friend updated the iPad to iPadOS 17.5 this week, and began seeing the Reddit user's old ...
iphone se 4 modified flag edges

iPhone SE 4 With Face ID Said to Be Priced Below $500

Monday May 20, 2024 3:43 am PDT by
Apple is targeting a sub-$500 starting price for its upcoming fourth-generation iPhone SE model despite a raft of rumored upgrades coming to the more affordable device. According to leaker Revegnus on X, the U.S. launch price of the fourth-generation iPhone SE will either remain at the same $429 starting price as the current model, or will see an increase of around 10%. Either way, Apple's...
iOS 17

Apple Releases iOS 17.5.1 With Fix for Reappearing Photos Bug

Monday May 20, 2024 10:11 am PDT by
Apple today released iOS 17.5.1 and iPadOS 17.5.1, minor updates to the iOS 17 and iPadOS 17 operating system updates that came out last September. The 17.5.1 updates come a week after the launch of iOS 17.5 and iPadOS 17.5. iOS 17.5.1 and iPadOS 17.5.1 can be downloaded on eligible iPhones and iPads over-the-air by going to Settings > General > Software Update. According to Apple's...
iPhone 16 Camera Lozenge 2 Perspective

iPhone 16 Lineup Rumored to Come in These Two New Colors

Sunday May 19, 2024 11:08 am PDT by
Apple analyst Ming-Chi Kuo today outlined his expectations for the iPhone 16 lineup's color options, revealing that two new colors should replace two of the existing shades. Kuo outlined his expectations in a post on X (formerly Twitter) earlier today. He believes that the iPhone 16 Pro and iPhone 16 Pro Max will be available in black, white or silver, gray or "Natural Titanium," and rose....
oled m4 ipad pro grainy display reports

OLED iPad Pro Users Report 'Grainy' Displays, But It May Not Be a Defect

Friday May 17, 2024 5:57 am PDT by
Some new M4 iPad Pro models are exhibiting a visible static grain pattern across the OLED display, according to several user reports on Reddit (1, 2, 3) and the MacRumors Forums. Image credit: MacRumors user bk215 Users who see the grain generally report that it is most noticeable in dark environments with the display set at a low to medium brightness while viewing content with gray or muted...
microsoft surface pro qualcomm

Microsoft Says New Surface Pro is Faster Than 15" M3 MacBook Air

Monday May 20, 2024 3:19 pm PDT by
Microsoft is going all in on AI, today introducing a series of Copilot+ PCs that have AI-focused hardware. The new Surface Pro is one of the first Copilot+ PCs, equipped with Qualcomm's Arm-based Snapdragon X Elite processor. Microsoft is already pitting the Surface Pro against Apple's M3 MacBook Air, and in marketing materials, claims that the Surface Pro has superior processing power and...