Apple iCloud: $25 Per Year After Free Trial
According to 9to5Mac, The LA Times has reported that the iCloud will be a low-priced add on to iTunes and will cost users only $25 a year. Before charging the fixed fee, however, the service will be offered for free to people who buy songs through Apple’s iTunes digital download store. Users will be able to upload their music to Apple’s computers and later play the tunes from a web browser or any Apple device. Apple would also sell advertising around its iCloud service.
Business Insider reports that the LA Times has posted an update saying that record labels will get 70% of the revenues from the deals, Apple will get 18%, and publishers will receive 12%. These new figures changed from the previously mentioned 58% cut that Apple was said to receive.
I think it goes without saying that the record industry has the upper hand when it comes to these business dealings. To be able to legally play copyrighted music is incredibly expensive, especially when said music comes from mainstream producers who are already raking in millions of dollars. Not to mention the popularity of having your company or platform receiving full access to such consumer-desired music. It’s a good thing Apple realized this imbalance of power, and let the record labels have their way. That’s how business should be done, through compromises.