Apple Rumored to Replace iTunes With $10 "Spotify" Streaming Music Service

Apple is planning to launch a streaming music service, like Spotify in the upcoming Worldwide Developer's Conference, WSJ is reporting.

"With its dominant position in music threatened by a decline in download sales, Apple Inc. is preparing to launch a direct rival to Spotify AB and other popular services that let users stream songs instead of buy them," WSJ noted.

The report added that Apple wants people to pay $10 a month to stream songs. Unlike Spotify, which has an ad-supported service as well subscription, Apple will make only a handful of songs available for free listening, these people say, the report mentioned.

According to the report, Apple is yet to close the deals with the three biggest global music companies, Vivendi SA's Universal Music Group, Sony Corp.'s Sony Music Entertainment and Warner Music Group.

However not everyone is optimistic about the change. Some artists and smaller lables have complained about low royalty rates for streamed music.

Spotify recently announced a major overhaul of its service to include video, podcasts and new services.