An Apple web radio service, set to rival the likes of market-leader Pandora, is reportedly in negotiations with the big labels but some sources have revealed that they are not happy with the current package Apple is offering.

The radio service, set to launch in early 2013, will be an ad-supported, app-based platform. Apple is looking to get ahead of Pandora by applying for earlier access to new music.

Negotiations around revenue shares are estimated to be concluded by mid-November, ...