Rumors say Apple is set to release its own pay music streaming service to compete against popular online music streaming sites Spotify, Rhapsody and Rdio.

Instead of developing a new service from scratch, Apple will use and modify Beats Music to execute its music streaming platform.

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Apple's bought Beats Music, its biggest acquisition, earlier this year. Beats Music, however, hasn't had the same success as other music streaming companies though priced similarly to the competition. Beats Music was acquired for US$3 billion by Apple.

The Cupertino-based company aims to offer cheaper service compared to other online music streaming services, luring listeners to use Apple's service.

Rumors say Apple is now talking with big music labels regarding a new set of rights and features that will be included in a revamped version of the Beats Music service.

Apple wants to reduce the US$10 price per month for Beats Music service to attract more listeners. The company says US$10 is too expensive.

Talks with music labels are still in early stages and reports say negotiations will likely be successful. Apple spokesman Tom Neumayr didn't comment about the matter.

The changes will show-up in Beats Music next year. The period until then will give Apple ample time to negotiate with the labels.

Tagsonline music streaming service, Beats Music