Apple’s iCloud free at launch, $25 yearly subscriptions come later on?

Apple’s iCloud free at launch, $25 yearly subscriptions come later on?
Apple’s iCloud service is no longer a rumor – Apple itself posted a preliminary confirmation of its upcoming announcement of the cloud-based music service. But while we knew that Cupertino was close to signing a deal with the four major labels giving it access to a vast majority of popular artists, the LA Times broke news that agreements have been inked by Apple today.

The daily has something interesting about the pricing of iCloud as well: it will be free initially for people buying music from iTunes so they can upload their tracks to the cloud, while later Cupertino plans to monetize it by transforming it into a subscription-based paid service.

The subscription fee will be around $25 a year, but Apple will pair income from subscriptions with commercials around iCloud. Apple will have to share 70% of all revenue from the music service with labels, while 12% go to publishers holding songwriting rights. The remaining 18% are what’s left for Apple, the LA Times quotes “people knowledgeable with the terms.”

Eventually, iCloud will morph into more than just a music-sharing service – a repository for all types of iTunes content like movies and TV shows, another “knowledgeable” source added. It seems that Cupertino has managed to quietly outpace its major competitors in the music-sharing space like Amazon with its Amazon Cloud Player and Google with its Music Beta, both of which failed to sign all four major labels.

source: LA Times via ElectricPig

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5 Comments

1. clevername

Posts: 1436; Member since: Jul 11, 2008

Apples place among smartphone and mobile os makers may be arguable but when it comes down to music they are the undisputed king. And I don't think they will roll over and let anyone take that away anytime soon.

8. Lucas777

Posts: 2137; Member since: Jan 06, 2011

well if they have the music label support, this cud be a big success... it will be the zune that never happened... but what i dont get is if zune alrady exists, isnt that basically what this wants to be?

2. android_hitman unregistered

why to pay?

7. cdornon

Posts: 2; Member since: Jun 03, 2011

I must be missing something. Why would people with limited data plans (now that we know unlimited is dying off) ever want to do this is on their smart phone? Conversely; there are several cable providers attempting to implement metered broadband. This new cloud service just seems to go against the grain and would potentially end up costing the end user a mint in broadband overages. What gives?

9. iHateCrapple

Posts: 734; Member since: Feb 12, 2010

Excellent point.

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