Apple readying Web music service

Apple Inc has reached agreements with three major record labels to let users of its new music service access their song collections from handheld devices via the Internet, people with knowledge of the deals said.

The new iTunes offering will let users store content on Apple's servers and access it using the Web, rather than loading songs into a device's memory, said the people, who asked not to be identified because the plans haven't been made public. The plans could be previewed as early as Apple's developers conference, set to begin June 6, the people said.

Apple, the largest US music retailer, follows Google Inc and Amazon.com Inc in letting consumers stream music from the so-called cloud instead of downloading it to a hard drive. Unlike competing products, Apple's cloud music service won't require users to upload online collections, two people said. Record labels are counting on cloud services to reignite sales of digital tracks, which have stagnated in recent years.

Apple has reached licensing accords with Sony Corp's music division, EMI Group and Warner Music Group, the people said. Universal Music Group, the largest recording company, is close to a deal, another person said. The company also would need to reach agreements with music publishers, which control different rights than the labels.