Apple Inc. (NASDAQ:AAPL) is ready to make its grand entrance in the word of music streaming service. Apple Inc. (NASDAQ:AAPL) is currently close to sealing deals with two music labels.

Apple iRadio

There has been numerous rumors that Apple Inc. (NASDAQ:AAPL) wanted to work with record labels to create an iTunes streaming service. Right now, the Cupertino-based company is trying to get the labels to agree to the terms. CNET’s sources report that Apple will pay about half of what radio-streaming service Pandora Media Inc (NYSE:P) currently pays, but there would also be extra revenue streams to boost profits.

One possible idea suggested is adding links to iTunes music downloads to the radio. If a user likes a song they hear on the streaming service, they can click the link and download the song directly from iTunes. There would also be revenue share from the iTunes audio ads .

Apple spokesman, Tom Neumayr  has not yet made an official statement regarding the news.

It’s reported that Apple Inc. (NASDAQ:AAPL) could sign deals with Warner Brothers and Universal Group, but nothing is set in stone just. Apple will need to get Sony Music Group and music publishers on board. It could take awhile before we hear anything just. Apple hopes to roll out the whole new service sometime this summer, which makes sense as Apple tends to launch some of their services like iTunes Match and iCloud during June.

The company also hopes that they can offer music streaming services throughout the world, in countries including the United States, United Kingdom, Germany, France,Japan, and  Australia.

The question Apple Inc. (NASDAQ:AAPL) should really consider before launching the service is this: is it too late to enter a music streaming market that’s already dominated by key websites like Spotify, Rhapsody, and Pandora Media Inc (NYSE:P)?These services have been around a lot longer and already established followings. That said, Apple could still take the lead with this one.

[via: CNET]