According to a source for The Verge, Apple is sitting on 'Go'. "The “iRadio is coming. There’s no doubt about it anymore," said the source. Apple will be entering a very competitive arena, but if it can use its clout to get better deals than Pandora, Last.fm and Spotify, Apple will be able to profit even if it offers the service free, supported by ads like the latest rumors say. Speaking of Spotify, that service is believed to pay the labels the most at 35 cents per 100 songs.
It is unclear what kind of deal Apple is seeking with Universal and Warner. Pandora's rate is set by a statute that covers web radio services, but it says that the rate needs to be lowered for it to remain profitable. Knowing Apple, Pandora and the other streaming music services should be afraid. Very afraid. When Apple enters a market, they play for keeps.
source: TheVerge via Pocketlint