Apple’s iCloud fetches deals with major record labels

June 3rd, 2011 - 3:03 pm ICT by IANS  

New York, June 3 (IANS) Even before Apple launches iCloud later this week, the Cupertino-based company has signed deals with major records labels for the new music service.

Warner Music Group, EMI Music Group, Universal Music Group and Sony Music Entertainment are among those which reportedly inked the deals Thursday, according to bloggers.

Apple boss Steve Jobs will unveil iCloud at the annual Apple Worldwide Developers Conference in San Francisco Monday.

Bloggers say Apple will initially offer iCloud service free to those who buy music from its iTunes digital download centre. Later, it will charge a $25 annual fee.

Under the deals signed with major record labels, Apple will share 70 percent of any revenue from iCloud’s music service with record labels, as well as 12 percent with music publishers holding the songwriting rights. Apple is expected to keep the remaining 18 percent,” according to a blogger with the LA Times.

Much is not known about iCloud except that it will allow users to upload music to their Apple computers to then play from a Web browser or Internet-linked Apple devices.

In its brief press note Monday, Apple only said that it will “unveil its next generation software - Lion, the eighth major release of Mac OS X; iOS 5, the next version of Apple’s advanced mobile operating system which powers the iPad, iPhone and iPod touch; and iCloud, Apple’s upcoming cloud services offering.”

Apple, which pioneered the digital music revolutionary with its iPods, currently controls up to 85 percent of music download market thanks to its hugely successful iTunes music store.

And just like its pioneering iPad has triggered rush among competitors to enter the new lucrative tablet market, iTunes too has led Amazon, Google and others to enter this youth-driven market.

Amazon’s own version called Amazon Cloud Player was lunched in March. Google hit the market with its Music Beta service last month.

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