Apple Paying Between $100 and $150 Million To 4 Major Music Labels For iCloud

Posted Jun 3, 2011

Apple Inc. (NASDAQ:AAPL) is going to be paying between $100 and $150 million in advanced payments to the four major music label companies to run iCloud. Apple agreed to pay between $25 and $50 million each. A source with the NY Post reveals that the iCloud service will be initially free to those who bought music through iTunes, but Apple is considering a $25 per year charge in the future. The breakdown of the deal is expected to be Apple getting 30%, music publishers getting 12%, and the rest is given to labels to divide with their artists. [NY Post]