Apple launches iTunes Radio
Apple activated its free, ad-supported iTunes Radio service alongside iOS 7 and iTunes 11.1, bringing personalized streaming radio directly into Apple's music ecosystem.
Historical context
Apple had dominated paid music downloads through the iTunes Store, but listening behavior was shifting toward Pandora-style radio and Spotify-style streaming. Embedding a streaming service in iOS gave Apple immediate access to an enormous installed base without requiring users to adopt a separate music application.
What happened
iTunes Radio launched in the United States with artist- and genre-based stations, personalization and integration with the iTunes Store. It was available through iOS devices, desktop iTunes and Apple TV, with advertising removed for iTunes Match subscribers.
Consequences
iTunes Radio marked Apple's first major move into internet music streaming and increased competitive pressure on Pandora and Spotify. Although the standalone service was later absorbed into Apple's broader music strategy, it helped prepare the ecosystem for Apple Music.