Apple reportedly shifting iAd focus away from apps to rumored 'iRadio'

According to people familiar with the change in advertising tactics, Apple has tasked iAd engineers and sales staff to support its much-anticipated music streaming service, dubbed "iRadio," which is rumored to be unveiled at the company's Worldwide Developers Conference on June 10, reports Bloomberg.

Sources said Apple CEO Tim Cook is searching for new ways to bring in advertising revenue after iAd failed to make a significant dent in the lucrative mobile ad market, which is currently dominated by Google. These people also claim Apple will slowly pull back from its role as a network serving up ads on mobile devices, instead refocusing its efforts on the as-yet-unreleased iRadio platform.

Leading the charge for iAd's new direction is Apple's senior vice president of Internet Software and Services Eddy Cue, and advertising chief Todd Teresi, who was hired away from Adobe last year.

The publication noted that iRadio is not likely to launch until later this year, when the next-generation iOS 7 is due for public consumption, though the service may make an appearance at WWDC if licensing deals can be wrapped up in time.

It was reported on Sunday that Apple inked an agreement with Warner Music Group for both music and publication rights. Previously, a deal was struck with Universal Music Group, but the world's second-largest label, Sony, is said to be at odds with Apple's proposed payment structure.