By Paul Sloan – Cnet

Apple is close to striking a streaming deal with two of the major music labels that could end up far sweeter for the music industry than what the labels currently get from Pandora, according to two people familiar with the negotiations.

Much has been made in recent weeks of Apple trying to squeeze the labels on terms, and the deals do have Apple paying the labels a per-stream rate that’s half of what Pandora pays. But CNET has learned that Apple’s planned music service would offer new revenue streams as well.

That includes a quick way for consumers to buy a song they hear, potentially boosting download sales from iTunes, as well as a revenue share of new audio ads Apple is planning to add to the free service, according to sources.

The product would be tied to iTunes, and available on mobile devices.

… read more in Cnet