Apple are rumoured to have entered into a licensing agreement with Warner Music Group which will help with the launch of their music streaming service that they are said to be working on.

Warner is the first music company known to be backing Apple’s so-called iRadio service with others quickly following suit including Universal. Sony is said to be reluctant however due to royalty concerns.

There are rumours however that Apple will be offering music companies similar, if not higher royalty fees than its rivals such as Pandora.

Industry insiders are expecting iRadio to be an ad-supported and will of course be fully integratable with iTunes which allow for instant purchase of music.

Although iRadio hasn’t been officially announced by Apple, the discovery of a “radio button” on jail broken iPads seems to support the rumours of the service and is of course creating a huge buzz with Apple fans.

It is widely thought that more will be revealed about iRadio at the Worldwide Developers Conference next month.