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Steve Jobs Apple

Apple's iCloud service will be free at first for iTunes customers

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By The Drum Team, Editorial

June 3, 2011 | 2 min read

With Apple reportedly tying up all the loose ends with music companies this week, it's all go for the big Steve Jobs show in San Francisco on Monday

Apple finally sealed deals with the four major record labels on Thursday for the iCloud music service, with agreements from music publishers to follow today, according to the Los Angeles Times blog Company Town.

Purchasers at the iTunes digital download store, will be able to upload their music to Apple's cloud computers and then play it from a Web browser or Internet-connected Apple device. Apple will also sell advertising around its iCloud service. Under this week's agreements, Apple will share 70% of revenue from iCloud's music service with record labels, as well as 12% with music publishers holding the songwriting rights, said Company Town, quoting people in the know. Apple is expected to keep the remaining 18%. Music companies said to have signed on to iCloud include Warner Music Group, EMI Music Group, Universal Music Group and Sony Music Entertainment. Although the service is initially focused on music, Apple is believed to see the service eventually being used for movies, TV shows and other digital content sold through iTunes. The iTunes music store has between 75% and 85% of the music download market, although Amazon.com Google and, in Europe, Spotify, are all moving in. Amazon launched its Amazon Cloud Player in March and last month Google came up with its Music Beta service.
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