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iCloud icon revealed, LA Times says service will cost $25 annually

In what turned out to be a busy day for the future iCloud service, AppleInsider posted images of banners unveiling the new service's brushed-metal icon at the Moscone Center, while the Los Angeles Times reported that iCloud will likely cost just US$25 a year. The L.A. Times also said Apple has sealed the deal with the last of the four major record labels for its upcoming cloud music service.

We reported Wednesday that parts of iCloud could be offered for free to those who purchase Mac OS X 10.7 Lion, but the $25 subscription fee for hosting music in the cloud might be a service that's separate from the free parts. The interesting thing, however, has to do with the revenue split. The L.A. Times says the agreement has Apple sharing 70 percent of iCloud's revenue with music labels and 12 percent with those who hold the songwriting rights. Apple will pocket the remaining 18 percent, or $4.50 out of every $25 subscription.

The article states that while iCloud will start with hosting music, it will branch out to movies, TV shows and other digital content, which we imagine will be the sort of content currently hosted by MobileMe. This fits with the rumors that iCloud will be superseding MobileMe.

We will have all of our iCloud answers on Monday, when TUAW will be hosting a live blog of Steve Jobs' keynote from WWDC.



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Software Apple

In what turned out to be a busy day for the future iCloud service, AppleInsider posted images of banners unveiling the new service's...
 

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tnydigiaco

Quote: "The article states that while iCloud will start with hosting music, it will branch out to movies, TV shows and other digital content, which we imagine will be the sort of content currently hosted by MobileMe. This fits with the rumors that iCloud will be superseding MobileMe."
OK, so does this mean that MobileMe is now $25 or is the services it provides (email, syncing and iDisk) becomes free and the music locker thing is added for $25?

June 03 2011 at 1:35 PM Report abuse rate up rate down Reply
Tim

"The L.A. Times says the agreement has Apple sharing 70 percent of iCloud's revenue with music labels and 12 percent with those who hold the songwriting rights. Apple will pocket the remaining 18 percent, or $4.50 out of every $25 subscription."

So what I can do for free with AudioGalaxy and a 1TB hard drive, Apple will be paying the music labels $17.50 a year? Can't believe Apple would agree to such a deal.

Amazon's Cloud is a much better deal in that all the music purchased from Amazon doesn't go towards the storage cap. Theoretically, you can stream all your music for free for Amazon's Cloud Player. Has Amazon negotiated a better deal than Apple could get for themselves?

Apple's .Mac, MobileMe and now iCloud models have never made sense to me, unless you just want to throw your money at them.

June 03 2011 at 9:11 AM Report abuse rate up rate down Reply
Glenn Gutierrez

Interesting. The payment directly to writers (and probably publishers) sounds like the work of BMI and ASCAP, as they consider streaming to be "airplay", like radio. This may finally allow Apple to build iTunes web widgets for music previews on blogs, Facebook, artist sites, etc., which is sorely needed.

Very nice that Apple is taking it out of their own cut and not the label's—which would ultimately cost the artist.

June 03 2011 at 7:45 AM Report abuse rate up rate down Reply
iSRS

So will we now have @icloud email addresses? I hope not. As someone who started with @iTools, then moved to @Mac, I never give anyone the @me address. Just go back to @Mac and leave it alone.

June 03 2011 at 6:45 AM Report abuse rate up rate down Reply
Sebastian Lahmeyer

I just renewed my MobileMe subscription! i hope that iCloud will be part of it...

June 03 2011 at 6:15 AM Report abuse rate up rate down Reply
Greg Peterson

They killed iSync, took the icon background, and then iCloud will kill MobileMe and take its cloud shape. Then they will be combined into one. The circle of life.

June 03 2011 at 5:05 AM Report abuse rate up rate down Reply
derp30003

hope the email and ical sync is free.... google offers the free email and cal sync, thats one of androids benefits! maybe they will support the services with iAds??? not really interested in the music locker, just the other stuff...

June 03 2011 at 1:00 AM Report abuse rate up rate down Reply
evanskis

I think it's kind of interesting that the iCloud logo has the exact same shape to it that the MobileMe icon currently has...

June 03 2011 at 12:05 AM Report abuse rate up rate down Reply
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