iRadio Streaming Service for free

Apple’s much rumored music streaming service, dubbed “iRadio,” will reportedly launch this summer, possibly as soon as next week during WWDC. The service will reportedly be free of cost, but will include display ads, and according to a new report today, audio ads as well.

From AdAge:

Apple will sell audio ads on its forthcoming streaming music service, already being dubbed “iRadio” by many. The service is expected to offer highly targeted ads, which could make it pricey — but appealing — to marketers and a major threat to already-struggling Pandora.

The audio ads will be sold via iAd, Apple’s mobile ad network, according to a former Apple executive with knowledge of the situation. In addition to audio ads, the streaming music service will also contain the mobile ads iAd currently sells.

The report says that Apple will be giving a 10 percent cut from the ad sales to music labels as compared to Pandora’s 4 percent cut, but is still facing difficulties getting all major record labels on-board before launch. Another important point the report adds is that the streaming service would also encourage users to buy tracks from iTunes. The streaming service itself, however, won’t let you search for songs and play it on-demand.

The ads will be targeted based on user tastes, listening history, iTunes purchases and of course location.

Since Apple typically doesn’t launch ad-supported products, we’d like to know what you think of an ad-supported iRadio with interstitial audio ads. During the WWDC keynote,

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