Apple Inc. (NASDAQ:AAPL) will officially launch iTunes Radio in September, around the same time as iOS 7.  AdAge first reported this, citing information from close sources.

Apple iTunes Radio

Apple deals with other companies

It’s also reported that Apple Inc. (NASDAQ:AAPL) has ad deals with well-known companies like PepsiCo, Inc. (NYSE:PEP), McDonald’s Corporation (NYSE:MCD), The Procter & Gamble Company (NYSE:PG), and Nissan Motor Co., Ltd. (OTCMKTS:NSANY) (TYO:7201). Advertisers will likely pay millions to tens of millions to run advertisements within iTunes Radio service for an entire year. Sources report that ads will be interactive and will work on both mobile devices and the internet. Users can avoid advertisements by subscribing to iTunes Match for just $24.99 a year, which allows people to find music that wasn’t purchased and listen to it.

CNET offers a better description of iMatch, “iTunes Match is integrated with Apple Inc. (NASDAQ:AAPL)’s iCloud platform, which taps into the cloud to do things like ferry files, content, and apps between Apple Inc. (NASDAQ:AAPL) devices. In this case, matched tracks are effectively licensed to users, letting them download music tracks to a device, even if they bought them on another device. Apple Inc. (NASDAQ:AAPL) has also extended the capability to its Apple TV product in a recent update, letting users listen to music from collection without storing it locally.”

Introduction of iTunes radio

Earlier this summer, Apple Inc. (NASDAQ:AAPL) introduced iTunes Radio. Eddy Cue (chief of iTunes) told everyone that the new music service would be available in September. Unlike competitors like Spotify and Rhapsody, instead of offering a library of songs on demand, this service will offer 200 different radio stations for users to stream from. It will be more like Pandora Media Inc (NYSE:P).

iTunes Radio is a long time coming but it will likely create more interest in iTunes as well as encourage users to downloads. Apple Inc. (NASDAQ:AAPL)’s currently in the lead for music downloads and it doesn’t look that will change anytime soon. Music is an intregal part of iTunes and it should be interesting to see if this enhances Apple Inc. (NASDAQ:AAPL)’s overall music experience.