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.

Popular Stories

AirPods Pro 3 Mock Feature

AirPods Pro 3 Just Months Away – Here's What We Know

Friday April 18, 2025 5:16 am PDT by
Despite being more than two years old, Apple's AirPods Pro 2 still dominate the premium wireless‑earbud space, thanks to a potent mix of top‑tier audio, class‑leading noise cancellation, and Apple's habit of delivering major new features through software updates. With AirPods Pro 3 widely expected to arrive in 2025, prospective buyers now face a familiar dilemma: snap up the proven...
iphone 16 pro models 1

17 Reasons to Wait for the iPhone 17

Thursday April 17, 2025 4:12 am PDT by
Apple's iPhone development roadmap runs several years into the future and the company is continually working with suppliers on several successive iPhone models simultaneously, which is why we often get rumored features months ahead of launch. The iPhone 17 series is no different, and we already have a good idea of what to expect from Apple's 2025 smartphone lineup. If you skipped the iPhone...
Beyond iPhone 13 Better Triad

Apple's 20th Anniversary iPhone May Finally Go All Screen

Tuesday April 15, 2025 6:31 am PDT by
Apple is preparing a "bold" new iPhone Pro model for the iPhone's 20th anniversary in 2027, according to Bloomberg's Mark Gurman. As part of what's being described as a "major shake-up," Apple is said to be developing a design that makes more extensive use of glass – and this could point directly to the display itself. Here's the case for Apple releasing a truly all-screen iPhone with no...
maxresdefault

iPhone 17 Pro Launching Later This Year With These 12 New Features

Sunday April 13, 2025 7:52 am PDT by
While the iPhone 17 Pro and iPhone 17 Pro Max are not expected to launch until September, there are already plenty of rumors about the devices. Subscribe to the MacRumors YouTube channel for more videos. Below, we recap key changes rumored for the iPhone 17 Pro models as of April 2025: Aluminum frame: iPhone 17 Pro models are rumored to have an aluminum frame, whereas the iPhone 15 Pro and ...
CarPlay Hero

Apple Releases Wireless CarPlay Fix

Wednesday April 16, 2025 11:28 am PDT by
If you have been experiencing issues with wireless CarPlay in your vehicle lately, it was likely due to a software bug that has now been fixed. Apple released iOS 18.4.1 today, and the update's release notes say it "addresses a rare issue that prevents wireless CarPlay connection in certain vehicles." If wireless CarPlay was acting up for you, updating your iPhone to iOS 18.4.1 should...
iOS 18

iOS 18.5 Includes Only a Few Changes So Far

Monday April 21, 2025 11:00 am PDT by
Apple seeded the third beta of iOS 18.5 to developers today, and so far the software update includes only a few minor changes. The changes are in the Mail and Settings apps. In the Mail app, you can now easily turn off contact photos directly within the app, by tapping on the circle with three dots in the top-right corner. In the Settings app, AppleCare+ coverage information is more...
top stories 2025 04 19

Top Stories: iPhone 17 Pro Rumors, CarPlay Bug Fix, and More

Saturday April 19, 2025 6:00 am PDT by
This week saw rumor updates on the iPhone 17 Pro and next-generation Vision Pro, while a minor iOS 18.4.1 update delivered not just security fixes but also a fix for some CarPlay issues. We also looked ahead at what else is in Apple's pipeline for the rest of 2025 and even the 20th-anniversary iPhone coming in 2027, so read on below for all the details on these stories and more! iPhone 17 ...
ipad air windows 11 arm

M2 iPad Air Runs Windows 11 ARM via Emulation, Thanks to EU Rules

Tuesday April 22, 2025 5:01 am PDT by
A developer has demonstrated Windows 11 ARM running on an M2 iPad Air using emulation, which has become much easier since the EU's Digital Markets Act (DMA) regulations came into effect. As spotted by Windows Latest, NTDev shared an instance of the emulation on social media and posted a video on YouTube (embedded below) demonstrating it in action. The achievement relies on new EU regulatory...

Top Rated Comments

neuropsychguy Avatar
155 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
155 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
155 months ago
If its not like spotify then im not that fussed about it tbf
Score: 10 Votes (Like | Disagree)
Dekema2 Avatar
155 months ago
We want FREE, not ads! We get ads on radio all the time!
Score: 8 Votes (Like | Disagree)
iksretep Avatar
155 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
155 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)