iCloud to cost Apple $150 Million up front, says report
(CBS/CNET) - Apple is reportedly paying up to $150 million in advance royalties to the four major labels for iCloud music rights.
According to the New York Post, the maker of iTunes has agreed to pay each of the top record companies between $25 million and $50 million each in advance royalties.
Apple announced that it will unveil a new service called iCloud at its Worldwide Developer Conference Monday. While the company has not offered any specifics, CNET reports that Apple has been negotiating with the major music publishers about a cloud music service for over a year. Apple has since signed licensing agreements with Universal Music Group, Sony Music Entertainment, Warner Music Group, and EMI Music.
The iCloud is expected to offer users a means to store their iTunes-purchased music on the company's servers and then access those tunes from Web-connected devices. Sources told CNET on Thursday that streaming music won't immediately be made available on Monday and that Apple has plans to someday store songs users obtained outside of iTunes.