We told you last month that Apple where signing deals with major record labels in readiness for its planned iCloud music service. Today we have news of more Apple iCloud rumors ahead of WWDC next week.
The Los Angeles Times is reporting that after finalizing contacts with the record labels, Apple are set to seal agreements with music publishers according to sources. Once the service is up and running users who purchase music from iTunes will be offered the service for free for a limited period. Apple then plans to charge around $25 a year for the service, and might also be selling advertising for the service.
It is thought the deals that Apple has agreed will see the company sharing out 70% of any revenue made from the iCloud service with the labels. A further 12% is thought to be going to publishers with Apple keeping 18%, according to sources.
We told you previously that Apple was thought to have signed deals with EMI Group, Sony Corp, Universal Music Group, and now Warner Music Group has been added to the list. To start with the service will focus on users storing their music on Apple’s servers and allow streaming to their devices. But it could eventually be expanded to other content sold through iTunes.
Apple’s Tunes service currently accounts for between 75% and 85% of the market, but is now seeing more competition from the likes of Amazon and Spotify. Would you be willing to pay $25 a year for the iCloud service?
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