Report: Apple Inc. To Unveil Streaming Music Service Next Week

Apple Inc. AAPL is expected to unveil a new music streaming service for $10 a month at a developers' conference next week, according to a report Monday. http://www.wsj.com/articles/apple-to-announce-new-music-services-1433183201 The new service will put Apple in head-to-head competition with market leader Spotify with its 60 million users, according to a report in The Wall Street Journal. Apple changed hands recently at $130.51, up $0.23 cents and nearly in line with the Nasdaq Composite Index. The company is willing cannibalize its iTunes download business in favor of the new streaming service, according to the report, which cited "people familiar with the plan." Apple, the world's largest music retailer, reportedly believes the new subscription model will offer more revenue for both Apple and the biggest music labels. Apple can push its hundreds of millions of current iTunes customers to the subscription model on the same devices used to downloaded songs and albums, the report noted. The $10 monthly fee matches that charged by privately held Spotify. Apple hasn't completed contracts for the streaming service with three major music companies according to report, and an announcement could be delayed pending completed agreements. Apple also will unveil additions to its existing free, ad-supported iTunes Internet radio service with channels programmed and hosted by human DJs, the Journal said. The expanded radio service will put it in closer competition with Pandora Media Inc. P. Pandora closed down 1.3 percent at $18.42.