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The music service from Apple would supposedly work with all Apple's existing products. It would operate similarly to Pandora in that users could select a musician they like and a station would play songs by similar artists.
The WSJ article says Apple is attempting to negotiate its own licensing deals with record companies as opposed to the government-set rates paid by Pandora. The story also suggests this new service might be unveiled at Apple's big event next Wednesday, Sept. 12.
Apple's iTunes is a top destination for song downloads, but streaming audio sites like Pandora and Spotify offer up some competition.