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Apple Paying Record Companies Up To $150 Million For iCloud

According to The New York Post, Apple will hand over between $100 and $150 million in advance payments to the four major record labels as part of its iCloud deal with them. Each of the four, which includes Sony Music, EMI, Warner Music and Universal, were offered between $25 million and $50 million as incentives to get on board with Apple. The exact figures will ultimately depend on how many tracks consumers end up storing on Apple’s iCloud offering.

Yesterday we reported on the expected initial cost of iCloud, which is rumoured, to be free for the first year and $25 a year after that. The New York Post also notes that Apple will take a 30% cut of fees, the music publishers receiving 12% and the rest to going towards record labels and artists.

We also reported yesterday that Apple had finalised its iCloud deals with Universal Music, which was the hold out record company.  The New York Post also notes that the size of the advance payments was the major stumbling block for Google, which had apparently been negotiating with the music companies before launching its cloud music offering last month. The official iCloud announcement will come on Monday at the WWDC keynote.

[Via The New York Post]


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