iPhone UPDATE: Apple Makes iRadio Music Streaming Development Official, Users Will Able to Stream Music on iPads, Computers, Other Devices

As predicted by industry analysts, Apple announced at its Worldwide Development Conference on Monday that it was launching a music streaming service to compete with those of Pandora, Spotify and similar services. The service was rumored to be called "iRadio," but the official title based on the company's presentation seems to "iTunes Radio." 

The service will operate through iTunes to better match products with customers. Radio will be able to access iTunes users' music collections in order to better suit their listening habits. Someone with a heavy amount of hip-hop would receive mainly hip-hip recommendations from the service for example. Running Radio through iTunes will also carry an advantage for Apple in that if a listener hears a new artist they enjoy through the service, there will be a link to easily buy the track on iTunes. Sixty-three percent of all U.S. music sales operates through iTunes, so the feature will give Apple a further leg-up on the competition. 

There will be two versions available for users when the service debuts (an official date hasn't been released yet). One option, called iTunes Match, will allow users to enjoy music without being interrupted by advertisements for a yearly fee of $34.99. Another version will be free but listeners will have to sit through the occasional audio ad as well as the visual ads that appear around the page. 

Apple may also have an advantage over Pandora and Spotify thanks to the clout the company holds with its other products, such as iPhones and iPads. Whereas Pandora and Spotify rely entirely on music, the companies that hold the rights to songs can demand higher percentages of revenue in return. The popularity of iTunes and sale potential may cause the same companies to offer better rates to Apple. 

It's not Apple's first foray into a similar service however. The company tried to launch Ping, a music-based social networking site, in 2010 but shut it down within two years.