Apple has cut a licensing deal with Universal Music Group that will enable Apple's online music store to offer songs from the largest of the four top record companies, sources with knowledge of the talks told CNET.The agreement means Apple now has the rights to offer recordings from all of the major labels. In addition, Apple has reached agreements with some of the large music publishers, the sources said.
Apple announced Tuesday that it would unveil a long-anticipated service called iCloud on June 6 at its Worldwide Developers Conference in San Francisco. Apple did not disclose whether iCloud would include any music features, but we do know that Apple managers have sought for more than a year to create a music feature for the service.
Details about the agreements are few, but here's how the revenue from iCloud song sales will be split, according to the sources: the labels will get 58 percent, and publishers will receive 12 percent. Apple will take 30 percent.
Streaming will not be available on Monday but will be offered soon, the sources said. They added that an Apple digital locker will store only music purchased at iTunes. The company is said to have plans to store songs acquired from outside iTunes sometime in the future.
Obtaining rights from Universal Music, home of such acts as Lady Gaga, U2, and Kanye West, gave Apple the final piece of the puzzle as far as recording rights were concerned. As far as publishing and performance rights, Apple still has more deals to negotiate, and at this point it appears the talks will go to the wire.
Dubbed iCloud, the service initially will be offered for a free period to people who buy music from Apple's iTunes digital download store, allowing users to upload their music to Apple's computers where they can then play from a Web browser or Internet-connected Apple device.The company plans to eventually charge a subscription fee, about $25 a year, for the service. Apple would also sell advertising around its iCloud service.
The agreements, finalized this week, call for Apple to share 30% of any revenue from iCloud's music service with record labels, as well as 12% with music publishers holding the songwriting rights. Apple is expected to keep the remaining 58%, said people knowledgeable with the terms.
The numbers are different but I attribute that to confusion. Anyway.
― Ned Raggett, Thursday, 2 June 2011 20:50 (thirteen years ago) link