"BTIG analyst Richard Greenfield and his colleagues announced in a post (subscription required)that Apple will unveil a radio service, similar to Pandora (P). The radio streaming service,speculatively titled 'iRadio', will be routed through iTunes. In this article, I shall discuss why it isa great decision for Apple to release a radio streaming service, and how it will increase it netprofits in the long term. Apple has been in the music industry since 2000, when it renamed the then-acquired SoundJamMP as iTunes. The company has progressively released MP3 players (iPod, iPod Touch and iPodShuffle) and began to sell music in April 2003. With its universal experience and a loyalcustomer base, iTunes is certainly one of the most popular places to purchase music online,along with Amazon.Music industry has shifted towards live streaming and physical sales have gradually declined,rendering CDs and DVDs redundant. In May 2012, Spotify hit 20 million monthly users and itwas predicted that in just over a year, there would be 8 million paid users. Spotify has gainedconsiderably because of its Facebook app. By utilizing the largest social network, it gained500,000 new users in just 2 weeks. iTunes on the other hand is the go-to place if anyone wants topurchase music, in digital format. Considering how all the major recording labels (EMI, SonyBMG, Universal Music Group and Warner Music Group) have continued to make profits fromApple's iTunes platform, streaming is certainly going to be the next big thing for Apple. Apple Rules Music Market and Will Continue to Do So Market research company The NPD Group announced that iTunes has a market share of 64% indigital music while nearly 30% of all music sold (both digital and physical) originates fromiTunes. When iRadio is launched next year, this number will only increase as Apple will make itpossible to purchase songs that users like, when they are being streamed. All they would need todo is to click on a button (Apple already collects credit card information of iOS users) and thesales will only increase. Apple's price to sales ratio of 3.26 and price to book ratio of 4.31 suggest that it is comparingwell with its former sales and its competitors. iRadio will enhance interest in Apple's [productswhich are already popular entertainment devices. With a profit margin of 27% and an operatingmargin of 35%, Apple's profitability is very impressive. In spite of criticism over its Mapsapplication, Apple's iPhone 5 sales have surged in China and elsewhere. Apple has a return onassets of 23.61%, which again proves that the company is managed effectively.iRadio will enable people to purchase music right from their iOS device or iTunes when theystream music. This essentially means people will no longer have to use Pandora, Spotify or evenLast.fm and juggle with multiple subscriptions. Last.fm has the unique capability to suggest andrecommend music based on what a person likes or has 'scrobbled' (a term which means, to havelistened). Apple’s iRadio will likely use its Genius feature to recommend and suggest new artistsand genres just like Last.fm does. Genius already suggests and recommends people to purchasemusic based on what they have listened to on iTunes. What Apple’s Major Listed Competitors Are Up ToApple is the only company that is dominating the music industry. Bruce Greenwald, adistinguished investor and professor noted in an interview that Amazon (AMZN) is trading on "