Apple's iTunes Radio allows users to pay for an ad-free version

Apple differentiated its new iTunes Radio from streaming music leader Pandora at the Worldwide Developers Conference by unveiling an ad-revenue sharing model set at 10%, versus Pandora's 4%. Apple's service will be offered in a display and audio ad-supported model for free, or ad-free with a $24.99 subscription to Apple's cloud-storage service iTunes Match, which encourages the purchasing of songs for $1.29 a tune. Some industry observers say Apple may have an edge over competitors in owning a richer data set of its consumers for ad-targeting purposes.

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