CNET is reporting that Apple is planning to unveil their iTunes music streaming service at least by the third quarter of this year. After Apple acquired Lala back in December, it was rumored that the company was entertaining the idea of a streaming music service that would allow users to back-up and access their music library from any device with internet connectivity.

"Music industry sources told CNET this week Apple has informed label managers that a streaming music service is unlikely to be ready before the third quarter. It will be a disappointment for iTunes fans who have been speculating as to when Apple might use music site Lala--which Apple acquired in December--for its streaming expertise to launch a cloud-based music service."

This is definitely disappointing to hear and if you are looking for even more bad news CNET is also reporting that Apple "hasn't done much" with video content for iPad either with the exception of sending iPads to certain movie executives. But we're not greedy, we'd be happy with Hulu and Netflix streaming...

[Via CNET]

• iWork and Office document viewing
• Save images from E-Mail directly to photo library
• Contact Search
• E-Mail/SMS Bulk Delete & Move
• Scientific Calculator when switched to Landscape Mode in Calculator
• Support for a TON of languages including Chinese, Japanese

Firmware 2.0 will be available for iPhone users come 'Early July' for free and for iPod Touch users at a reduced fee (compared to the last update) of $9.95.