The iPhone maker is expected to unveil its Spotify competitor at its annual developer conference in early June.
According to industry sources quoted by 9to5Mac, a new iTunes music streaming service will offer curated playlists, the ability to store digital music collections in the cloud and song selections tailored to individual tastes. And perhaps most crucially, cost $7.99 for the highest service tier, a pricing strategy that would make it cheaper than its leading rivals.
In May 2014 Apple acquired Beats, the company famous for its Beats by Dr Dre premium headphone range, but also for a music streaming service created by musicians for music lovers. Beats Music creates playlists and recommendations based on human expertise rather than just algorithms and Apple has spent much of the last year attempting to integrate Beats Music into its existing iTunes offering.
What isn't clear at the moment is whether the service will be the finished article or a beta, still-in-development release and whether the launch in June will be global or confined to just the US.