Report: Apple's iRadio To Be Supported By Ads

Apple Inc., planning to unveil a music-streaming service next week, is revamping how it sells mobile advertising to cater to businesses eager to reach customers as they listen to songs, people familiar with the changes told Bloomberg.

According to Bloomberg, engineers and sales staff in Apple’s iAd business have been charged with supporting the new digital-radio service, which the company plans to debut as early as June 10 at its annual developers conference, said the people, who asked not to be named because the moves aren’t public. The music service won’t be publicly available until later this year, when Apple’s iOS 7 mobile-operating system is released, one person said.

Apple Chief Executive Officer Tim Cook is shifting how the company courts advertisers after failing to make much headway against Google Inc. in the $4.11 billion U.S. mobile-ad market. Apple will seek to land big brands for the new streaming-radio service -- akin to Pandora Media’s business model --scaling back its role as a network that places marketing messages in mobile software from its App Store.

Apple, based in Cupertino, California, has been negotiating with advertising companies including Omnicom Group Inc. to secure brands that will run campaigns on the radio service, one person said.

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