We first heard of Apple's rumoured streaming service to rival Pandora last month from the Wall Street journal but now Bloomberg is weighing in:

"Apple Inc. and major music labels have intensified negotiations to start an advertising-supported Internet radio service by early next year, according to people with knowledge of the talks. 

Talks are centered in part around how to share ad revenue and a deal could be reached by mid-November, with Apple starting a service within the first three months of 2013, said the people, who asked not to be named because discussions are still in progress."

The main sticking point between Apple and the record companies seems to be the split of advertising revenue from the service.

One thing's for sure Pandora's stock prices took a hit today and may not recover soon!