14 DAY TRIAL // Apple has reportedly finalized deals with the four major record labels this week with music publishers to follow to set everything in place for the iCloud service.
To get one thing out of the way, those on site at Moscone West have snapped photos of the official iCloud icon.
Citing sources familiar with the negotiations between Apple and the music labels, the LA Times is reporting that Apple’s iCloud will initially be free to those who buy music from Apple’s iTunes store.
Apple ID holders will be able to upload their music to Apple's servers where they instantly become accessible anywhere from a web browser or any Apple device that’s connected to the Internet.
Following what may be regarded as a beta testing period, Apple will eventually charge a fee for the service. The people allegedly familiar with this roadmap say it will be around $25 a year.
Under the terms of the agreements Apple finalized this week with Warner Music Group, EMI Music Group, Universal Music Group and Sony Music Entertainment, the Cupertino electronics maker will reportedly share 70% of any revenue from iCloud's music service with the record labels.
Some 12% of the revenue will go to music publishers, leaving Apple with an 18% cut, said people who were allegedly aware with the terms.
The 18 percent Apple gets to keep will also be used for maintenance of the North Carolina data center where all this music will be stored, so it is unclear exactly how much profit Apple will make. Ultimately, though, it will all come down to how much of a hit iCloud will be.
Although the details of Apple’s deals with record labels are pretty much confirmed, not one representative from either of the four companies could be reached for comment.
Apple, of course, is mum as well. The company doesn’t have any reasons to jump the gun either. WWDC 2011 kicks off next monday with major new announcements, on of which has been confirmed to be iCloud.
Also according to a person who is reportedly knowledgeable of Apple’s plans, the company is said to be envisioning an iCloud not just for music, but for movies, TV Shows, and other types of digital content, all stemming from iTunes.