Peter Kafka at All Things D reports that Apple has reached an agreement with Sony Music about the terms of its forthcoming streaming music service, likely called iRadio and likely to be unveiled at WWDC next week.
The basic idea is to create a Pandora-like service rather than a Spotify-style one with true on-demand listening. It sounds like a very nice very sensible extestion of what Apple's already doing. It also makes you wonder what future there is out there for the Pandoras and Spotifys and Rdios of the world. For an Apple or a Google this kind of thing makes sense more or less as a pure platform play. It doesn't need to be a profit center, it just needs to hold its own financially and create value for the overall ecosystem. But for the companies who really pioneered mainstream internet radio, this is supposed to be a core business and I doubt they'll be able to compete.