There’s been reports floating around for over a year now that Apple could release its own music streaming service, currently dubbed iRadio. CNet is reporting on an article from BTIG Research who is the source of the rumors. With the launch of iTunes 11 yesterday, there’s a new Radio addition to the toolbar, which currently has some very limited selections, but could very well be updated later on.

We expect Apple’s iRadio to be vastly superior to Pandora because Apple is unwilling to settle for compulsory music licenses. Instead, expect iRadio to seek direct deals with labels at premium rates enabling iRadio to offer a superior feature set including a global solution (sites like Pandora are limited to the US), increased skips (compulsory licenses limit skips to six/hour) and maybe most importantly, extended caching so that wireless dead-zones are no longer a problem whether driving, flying or underground.

With options like Pandora, Slacker, XBox Music, Last.FM, SiriusXM, etc., where would “iRadio” fall into the mix?