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Apple's Cloud-Based Music Service to Offer Storage, Not Subscription Access
Financial Times reports that Apple has "clarified" with music labels its intent for a cloud-based music storage service, positioning the service as a way to back up existing collections and move music to Apple devices rather than as any sort of subscription streaming service.
Apple, which rocked digital music services such as Pandora, Rdio and MOG last week by announcing plans to keep 30 per cent of all revenues from subscriptions taken out through its App Store, has clarified its plans for using remote storage, known as the cloud, according to several music industry executives.
More than a year after buying Lala, a cloud-based digital music service, Apple is now looking to use the cloud mainly to allow users of its iTunes store to back up their collections and access them from any Apple device.
One person with knowledge of Apple's plans said the company did not want to undermine the market that it dominates for paid downloads, likening its plans for the cloud to "insurance".