Apple is reportedly working on creating a streaming Internet radio service that would compete against companies like Spotify and Pandora. Apple is rumored to be seeking deals with music labels to get more flexibility than what Pandora is getting. The rumor about the new Apple radio service was that it would only be months away. However the music labels and Apple are far from making a licensing deal, but Apple is still hoping for an early 2013 launch according to CNET:
My sources say that, at a minimum, a deal with all the majors is nowhere near to being completed. Even if Apple sweetens its offer or the big labels change their mind tomorrow, these deals take a while to put to bed. Even in the best case scenario, it will still be a while before we see iRadio.