We heard earlier today that Apple intends to offer its new iCloud service for free when it launches and then start charging users $25 to use the service later on, and now it seems that Apple is putting major investment behind iCloud in an attempt to get it off the ground.
Both Google and Amazon offer music stremaing services, although they don’t offer all the services that Apple are likely to announce on Monday as they don’t have any deals with the record labels.
We have been hearing over the last few weeks that Apple has been signing deals with the major record labels, and we also heard this morning that Apple has signed their final deal with Universal Music.
That makes four record labels that Apple now has deals with for iCloud, which include Universal Music, EMI, Warner Music, and Sony Music, and according to a recent report by the NYPost the deals could have cost Apple anywhere from $100 to $150 million.
Thats quite a bit of investment for a new music streaming service, especially considering that Apple will offer the service for free and then charge $25 a year for it later.
According to the report, out of the $25, Apple will take 30 percent, 12 percent will go to the record labels and the remaining 58 percent will go to the artists.
Filed Under: Apple