Chief executive Tim Cook said the new Apple Music service would be "the next chapter in music" and "will change the way you experience music forever." The service will be available for USD 9.99 per month, with a family plan for up to six people at USD 14.99.
"Apple Music is really going to move the needle for fans and artists," said Apple's Jimmy Iovine.
"Online music has become a complicated mess of apps, services and websites. Apple Music brings the best features together for an experience every music lover will appreciate,"  Iovine said.
The service includes a live radio station called Beats 1, tools to find curated playlists or individual songs and a social music network on which users can comment on music and share it.
"We love music, and the new Apple Music service puts an incredible experience at every fan's fingertips," said Eddy Cue, Apple senior vice president of Internet software and services.
"All the ways people love enjoying music come together in one app -- a revolutionary streaming service, live worldwide radio and an exciting way for fans to connect with artists," Cue said.

READ MORE: Apple announces iOS 9 with smarter Siri

ALSO READ: Five major announcements by Apple at 2015 Worldwide Developers Conference