At WWDC, Apple announced the long-time coming iTunes Radio service. While rumors were flying around about the service, we kept referring to the product as iRadio. iTunes Radio is a streaming music service can is personalized based on your habits. Apple also checks your preferences based on their Genius algorithms. Genre-based playlists are suggested along with recommended artists and tracks.
Sony Music, Universal Music, and Warner Music are all working with Apple on iTunes Radio. This service is free for U.S. based users. It uses text and audio ads to support the radio streaming. iTunes Match subscribers will not receive ads. iTunes Radio supports track skipping, which was one of the sensitive negotiation points.
The service looks very similar to Pandora. You can create stations based on tracks and artists. You can also thumb or thumb down songs. Songs can be purchased through a button that appears to the playing song.
Apple iTunes Radio is coming this fall around the same time that iOS 7 arrives. iTunes Radio will also be integrated into Apple TV.