Apple launched the free iTunes Radio service in Australia on Tuesday morning, entering a crowded field that includes players such as Spotify and Pandora.
It is expected to launch the service in New Zealand, Canada, and the UK in the coming months.
As with Pandora, iTunes Radio is ad supported and lets users create stations based on specific songs, artists, and genres.
It will play short video adverts between some songs. An ad-free version is available for users subscribed to the iTunes Match service, which stores the iTunes library in the cloud for AU$35 per year.
Unlike Spotify, iTunes Radio doesn't allow users to enter and play a specific song. But Apple says it will offer users stations "inspired by the music [they] already listen to".
"The more you use iTunes radio and iTunes, the more it knows what you like to listen to and the more personalised your experience becomes."
The streaming service first launched in the US in September alongside Apple's iOS 7 mobile software.
Internet streaming is a crowded market. Google, Samsung, and Sony are among the companies that have their own offerings.
Apple will be hoping the streaming service boosts sales of songs and albums in the iTunes store. Each song is accompanied by a "buy" button.