Apple’s iTunes Radio Allows Users to Pay to Avoid Ads
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Apple confirmed a week’s worth of speculation on Monday with the announcement of iTunes Radio — its foray into digital music streaming — at its annual Worldwide Developers Conference.
The free version of iTunes Radio will feature both display ads and audio ads that play between songs. As AdAge reported last week, all ads within the service will be served, targeted and sold via iAd, Apple’s mobile ad network. Apple will be sharing 10% of the ad revenue it earns via the service with copyright holders, more than double Pandora’s rate of 4%.
Like with competitors Pandora and Spotify, iTunes Radio will function under a freemium model; consumers can access an ad-supported version for free, or upgrade to a no-ads version by purchasing a $24.99 yearly subscription to iTunes Match, Apple’s cloud-based music storage feature.
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