Apple Music, available to users of iPhones and iPads on June 30 in 100 countries, includes a radio station with personalized playlists and a choice from millions of songs on demand.
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.
"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."
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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.