Apple signs deal with a third music label for iTunes cloud service

Apple's iTunes music service is still the leader in the downloadable music space but now it wants in on the ever growing cloud computing business. Before it does that with iTunes, however, it needs to make some deals. Bloomberg is reporting via unnamed sources that Apple has done just that with three of the four major music labels.

According to the story, the deals would allow Apple to let its iTunes customers store their music purchases on Apple's cloud servers and then stream the music via the Web rather than the current method of letting customers download the music files directly to the hard drive of an iPhone, iPad or PC/Mac. The report says that Sony, EMI Group and Warner Music Group have all agreed to Apple's streaming music terms. Universal Music Group is the one holdout but the report says that Apple "is close to a deal" with that company as well. Apple will also have to make separate deals with music publishers for their streaming music rights.

Apple is building a massive $1 billion facility in North Carolina that will be the hub for its cloud computing services, including the streaming iTunes music service. There's no word yet on when this new service will launch or if there will be a separate fee involved. Officially, Apple is not commenting on these rumors. However, it is possible that a preview of the streaming music services will be shown at Apple's Worldwide Developers Conference on June 6 in San Francisco.

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14 Comments

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KingCrimson said,
Nice, Apple just got in bed with more evil empires.
Yes because having no music in iTunes would really show the labels how evil they are and at the same time help apple make more money..

Oh.. wait, not it would be more the opposite wouldn't it..

So why is Apple able to secure deals, but Amazon and Google couldn't? Is it going to be a for-pay subscription service, with part of the cost going to the labels?

Admodieus said,
So why is Apple able to secure deals, but Amazon and Google couldn't? Is it going to be a for-pay subscription service, with part of the cost going to the labels?

Or even Spotify, which beat them all to the music streaming arena by a couple of years. It's complete BS frankly that the record companies think that the sun shines out of Apple's ass, but similar or superior offerings from competitors get lawyered into oblivion.

Majesticmerc said,

Or even Spotify, which beat them all to the music streaming arena by a couple of years. It's complete BS frankly that the record companies think that the sun shines out of Apple's ass, but similar or superior offerings from competitors get lawyered into oblivion.

Considering how much money they've already made off the 300 million iTunes accounts, is it any wonder they signed this deal? More profit. They could care less about how they hurt people.

I would like the various monopoly commisions to take a look at apple licensing deals.
I smell intel/amd tricks blocking others getting licensing and I have heard rumours thats why spotify is not in the USA, apple block its licensing attempts.

ZeroHour said,
I would like the various monopoly commisions to take a look at apple licensing deals.
I smell intel/amd tricks blocking others getting licensing and I have heard rumours thats why spotify is not in the USA, apple block its licensing attempts.

Isn't this kind of monopoly licensing exactly what got MSFT in trouble with the DOJ?

ZeroHour said,
I would like the various monopoly commisions to take a look at apple licensing deals.
I smell intel/amd tricks blocking others getting licensing and I have heard rumours thats why spotify is not in the USA, apple block its licensing attempts.
Except all of these labels are also licensing other services, and their own, which negates any idea of a monopoly..

Hercules said,

Had never heard of it until now. Thanks so much!

It's a great service. I pay for the premium service, but the mobile app is great.