iPhone UPDATE: Apple Inc. Reportedly Announcing Plans for iRadio Streaming Service Next Week

Apple Inc. will reveal plans for a new music streaming service at its Worldwide Developer's Conference that begins next Monday, according to a source familiar with the development. 

The product, which analysts have nicknamed "iRadio," has long been rumored as Apple looks to enter the growing music streaming market. Although few details are known about specific features within "iRadio," it is presumed that the product will behave like Pandora, as a radio station that plays music in line with the user's tastes. 

Apple already holds the major source of current music purchases, iTunes, but it's looking to compete with offerings from Google and Spotify in the streaming business. Listening to music ranks fourth on the list of activities most common amongst smartphone users. It's estimated that nearly half of smartphone owners use their device to listen to music. 

The service is expected to be free but will feature audio and banner advertisements to generate revenue. Apple makes most of its profits by selling devices such as the iPhone and iPod, making little by selling actual downloads of music. Pandora operates in a similar manner. Spotify is available for free, but users can pay a subscription to avoid being interrupted by audio ads. 

The rumors of Apple's upcoming announcement comes on the heels of Monday's headline that Apple had secured the streaming rights to Warner Music's record collection, guaranteeing the latter 10 percent of advertising profits in return. Apple already holds Universal's rights, but remains in talks with Sony.