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Apple Paying Music Labels Up to $150 Million for iCloud Streaming Rights?

The New York Post reports that Apple is paying the four major music labels up to a total of $150 million for the rights to include their music in its iCloud music streaming service set to be introduced on Monday. The revelation comes just as Apple reportedly finalized a deal with Universal, the last of the four major labels to sign on to the deal.
Apple will fork over between $100 million and $150 million in advanced payments to the four major music labels in order to get its iCloud off the ground, three separate sources told The Post.

The Cupertino, Calif., tech giant has agreed to pay the labels between $25 million to $50 million each, as an incentive to get on board, depending on how many tracks consumers are storing.
The report also claims that Apple has finalized deals with the corresponding music publishers, officially opening the door for a launch. Previous reports had indicated that Apple was putting the final touches on agreements with the publishers.

Multiple news outlets have reported since yesterday that iCloud will debut as a free service, with Apple eventually looking to charge in the neighborhood of $25 per year for the service. Sources have also claimed that iCloud will be limited at first, supporting only content purchased from the iTunes Store, but that Apple is working to expand iCloud to support music obtained from other sources in the future.

Top Rated Comments

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43 months ago
So much money to give Apple the right stream music that you already purchased from their servers (not even allowing to stream music that you purchased on CD or through other legal means) ?

Hope the rumors are wrong and there is more to the iCould ....
Rating: 13 Votes
43 months ago

Wonder how many people don't own iTunes music

I got about a 3k catalog. Not one from Apple.
Rating: 9 Votes
43 months ago

we bought those files, we store them on our hard disk and if you stream them from "your" cloud they are the same, only the space where you store them us different.

That's what Amazon does and Amazon doesn't pay the labels.

Thus we have to conclude that iCloud will be something different, yeah?
Rating: 8 Votes
43 months ago
If it's iTunes only content, this will be another failure from Apple.

iTunes only content on icloud = Ping 2
Rating: 6 Votes
43 months ago
That seems inexpensive considering how many labels it is...congrats Apple
Rating: 5 Votes
43 months ago

Wonder how many people don't own iTunes music

The bigger question is: how many people own music purchased OUTSIDE of iTunes ... probably a lot, and those are the once that are getting screwed if the rumors turn out to be true
Rating: 5 Votes
43 months ago

we all know Apple wouldn't do this but it could be a major selling point if they did....

FREE music storage locker for all your songs available anywhere with your iPod/iPhone/iPad or Apple computer. NOT synacble with PC/Android/whatever.

they take the $ hit and then get more Apple buyers.

How about:
- free storage for music you bought through iTunes (no additional storages needed on apple servers)
- small fee for your own music that you upload to the servers (maybe per GB)
Rating: 4 Votes
43 months ago

Record labels are no better quality group of people than the ladies that occupy the red light districts throughout the world...

Hey, don't be dissing on the prostitutes. we both know they have much more character than a record company. :chuckle:
Rating: 4 Votes
43 months ago

If there's one thing Apple has plenty of, it's cash on hand. Might as well use it to get idiot partners to cooperate to do what's in their best interests anyway as Apple drags them kicking and screaming into the 21st century.

I can't believe it should cost anywhere near that kind of money.

But I *can* believe that labels would demand that kind of money.

And perhaps with a cash rich company like Apple, this is worth it to try and force the business model onto the likes of Google/Amazon etc? It'll perhaps encourage labels and publishers to seek injunctions/damages against them.

A little like Apple forcing the agency model on everyone else when it set up ibooks. IMO thats a bad model that discourages competition amongst retailers. But if you're last to market and in a challenger position, its a smart thing to do, to neutralise advantages your competitor has.
Rating: 3 Votes
43 months ago
Wow, Steve Jobs must be an idiot to not see what all you posters see. Yeah, he must not have thought about using iCloud for more than music, and he must not realize that people might not have all of their music from iTunes, and he's totally unaware of capped broadband issues, and he certainly misses the point that sometimes you might not have access to WiFi.

Good thing you are all here to educate Steve on these totally obvious issues that Apple couldn't possibly have taken into consideration when building iCloud.

Or you could wait until Monday.
Rating: 3 Votes

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