Apple apparently has not given up on delivering an iRadio service. Efforts to get this deal done, however, seem to continue to be stuck. According to rumors, it is royalty terms with Sony that are the sticking point in getting the deal done so that iRadio can move forward.
If rumors are to be believed, Apple has already reached a deal with Universal Music and has a deal in principal with Warner Music. Sony, however, is holding out for a much better deal. We are doubtful that a better deal is coming, and thus the service remains stuck.
Apple has wanted to offer a streaming music service with buy here technology linked to the iTunes Music Store for some time, but it just has not happened.
We will have to wait and see, but with all of the time that Apple has invested, we can’t see that they will stop trying to reach a deal.