According to advertising trade magazine AdAge, users not paying the $24.99 annual subscription fee will receive one audio advert every 15 minutes and one video advert every hour.
The video will be shown when users when they are likely to be looking at the screen, according to the magazine.
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Apple is expected to reveal more details about the service as early as next month.
It officially unveiled the service at this year’s Worldwide Developers Conference in June. It followed months of speculation about the online music streaming service.
At the time, it revealed that iTunes Radio will go head-to-head with online radio services like Pandora and Last.fm, rather than all-you-can-eat streamers like Spotify.
According to the report, iTunes Match subscribers will not have to sit through adverts. Nor will they have a limited number of songs they can skip.
Apple declined to comment on AdAge’s story.
iTunes Radio is expected to debut in the US this autumn, with other countries following.
Apple is expected to unveil its new iPhone models at an event on September 10th. It is also rumoured that the company will announce the official release date for iOS 7 at the event.
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It is currently unclear if it will be announcing the much rumoured iPad and iPad mini updates at the show.
If it doesn’t, it may choose to also hold off the announcement of iTunes Radio for the iPad unveiling.