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Apple paying up to $50m per label, full Google Music coming

updated 08:50 am EDT, Fri June 3, 2011

iCloud may cost 150m total as Google Music looms

Apple may be paying significant up-front costs for its recently completed iCloud deal based on possible leaks Friday. Each label is reportedly being paid between $25 million to $50 million to sign on depending the amount of music listeners used on the web. The total mentioned to the New York Post would hover between $100 million to $150 million.

A music executive echoed earlier rumors that iCloud's music side would be free, at least initially, but might carry a $25 yearly fee later to cover the costs. Its revenue split would see Apple take 30 percent to cover costs while 58 percent would go to labels and 12 percent to publishers.

The deal may have inadvertently sabotaged Google's plans to finish its Music service. Google had already declined offering cash advances, but music insiders said Apple's agreed-to rates may now raise what Google would have to pay to get to the same features.

A finished Google Music would now possibly come in September, just as Apple is likely to be releasing iOS 5 and a new iPhone. The deal would also come over a year after Google was rumored to have started negotiations for its cloud music streaming, which led to it eventually scrapping any immediate music store plans and going with a system that required users upload their own collections.

Apple ies expected to show most if not all of iCloud at its WWDC keynote on June 6, though the music service wouldn't go live immediately. [image via Sachin Patel]



By Electronista Staff
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Comments

  1. J2-Droid

    Fresh-Faced Recruit

    Joined: Mar 2011

    +14

    Go with the other guy

    How long has MobileMe/.Mac been around and it still doesn't work. I'll take Spotify once Apple stops blocking them from coming to the states.

    Comment buried. Show
  1. pairof9s

    Senior User

    Joined: Jan 2008

    -15

    RE: Go with the other guy

    How can you compare a personal info mgt service w/ a yet to-be-released music storage to one that is music-only?

    /

  1. Arne_Saknussemm

    Forum Regular

    Joined: Apr 2011

    +14

    Will Apple...

    Start suing school kids for copyright infringement whenever they draw clouds?

  1. samirsshah

    Fresh-Faced Recruit

    Joined: Oct 2010

    0

    Ok to upfront payment but...

    better if it went live immediately because of the hype.

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