) --


(AAPL) - Get Report

plans to overhaul its iTunes service, using newly acquired

as the key component of the move, a report says.

Apple's iTunes users are required to download music onto a specific computer. But, the music streaming service, lets users buy and listen to music through a Web browser, meaning its customers can access purchases from anywhere as long as they are connected to the Internet.

Apple is considering adopting that same model for songs sold on iTunes, the

Wall Street Journal

reports. Therefore, users wouldn't be required to download Apple's software or their purchases.

As part of the move, the

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reports, Lala executives have been given key positions helping shape strategy for the iTunes Store, and some iTunes executives would report to them.

"It's our understanding that the Lala guys are going to be in very significant roles," says one person who has been briefed on Apple's plans, the



Apple's plans are in the early stages and could be altered. But if the plans do go forward, said people familiar with Apple's thinking, the company could start implementing them as soon as next year.

Apple will generate about $2 billion in iTunes revenue this year, estimates Piper Jaffray, about 20% more than last year.

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-- Reported by Joseph Woelfel in New York.

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