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NYPost: Apple paying major music labels up to $150 million for rights to music on iCloud
The New York Post is reporting that three separate sources have told them Apple is paying the big four music labels between $100-150 million for the rights to distribute their music through the new iCloud service, which is set to debut on Monday. Their sources say that each label will get between $25-50 million depending on the number of tracks iTunes users are storing. On Tuesday, Apple issued a press release stating that Steve Jobs will unveil the iCloud service on June 6. iCloud is widely expected to be a cloud-based digital locker that allows users to stream any music they own to any device they own. Apple has been aggressively working on deals with the major music labels for a while now, first getting Warner, then EMI and Sony to get on board. The last holdout, Universal, is rumored to have signed with Apple late last week. With up to a $50 million signing bonus, any cash-strapped music label would be crazy not to accept Apple's offer.
Disney will not be a part of iCloud launch
Disney CEO Bob Iger spoke at the D9 conference this week, and said that while he considers the cloud to be a huge force in technology going forward, he's not sold enough to be included in the first round of Apple's almost-announced iCloud service. Whatever Steve Jobs announces for iCloud on Monday (likely a music sharing and storage service, according to the rumors), it will not include goodies licensed under Disney. Still, Iger lauded Apple for working on what he called a "digital locker in the sky," saying that a system like that would really be "a step in a better direction for the user experience." Hopefully Apple will nail down Disney's agreement for iCloud in the future, if indeed it is going to serve as a media storage unit in the cloud. Meanwhile, Iger's plans seem much more local to his company -- rather than relying on Apple or any other company to sell and store his content, Disney apparently plans to "deliver entertainment directly to our consumers through a proprietary site or platform," said Iger. Seems a little inconvenient to have each content company set up its own platform to sell content (rather than going through Apple's store and service), but to each his own, we guess.
Upcoming Time Capsule tied to iCloud, caches software updates?
We recently reported that many Apple retail stores are running low on stocks of AirPort devices, and this is usually a strong indicator of an upcoming product refresh. 9to5 Mac has followed up on that and says its sources claim a refresh is indeed imminent. A new version of the Time Capsule, currently undergoing internal testing at Apple, will cache software updates for any devices that regularly connect to its Wi-Fi network. The device will "learn" which devices regularly connect to it and silently download updates for them in the background without user intervention. This functionality will work for both Macs and iOS devices, enabling users to install software updates from local caches instead of waiting for them to download first. John Gruber of Daring Fireball also speculates this could enable devices such as the iPad and iPhone to perform software updates without being tethered to a Mac, as is currently required. 9to5 Mac points out this technology already exists in Mac OS X Server, although in a more simplistic form that downloads software updates of all types rather than device-specific varieties. They also speculate that these new Time Capsules could be tied into iCloud, caching music in a user's online storage locker or large, frequently accessed files, and also providing user backups to iCloud. No one knows for certain when such devices will debut, nor can we say with any certainty that they even exist. All we know thus far is that current stocks of AirPort devices are dwindling at some Apple stores, and while WWDC is expected to focus on software, that doesn't specifically preclude the introduction of new hardware like a Time Capsule update.
iCloud icon revealed, LA Times says service will cost $25 annually
In what turned out to be a busy day for the future iCloud service, AppleInsider posted images of banners unveiling the new service's brushed-metal icon at the Moscone Center, while the Los Angeles Times reported that iCloud will likely cost just US$25 a year. The L.A. Times also said Apple has sealed the deal with the last of the four major record labels for its upcoming cloud music service. We reported Wednesday that parts of iCloud could be offered for free to those who purchase Mac OS X 10.7 Lion, but the $25 subscription fee for hosting music in the cloud might be a service that's separate from the free parts. The interesting thing, however, has to do with the revenue split. The L.A. Times says the agreement has Apple sharing 70 percent of iCloud's revenue with music labels and 12 percent with those who hold the songwriting rights. Apple will pocket the remaining 18 percent, or $4.50 out of every $25 subscription. The article states that while iCloud will start with hosting music, it will branch out to movies, TV shows and other digital content, which we imagine will be the sort of content currently hosted by MobileMe. This fits with the rumors that iCloud will be superseding MobileMe. We will have all of our iCloud answers on Monday, when TUAW will be hosting a live blog of Steve Jobs' keynote from WWDC.
Apple's iCloud bags last major record label, will cost $25 / year to sign up?
We'd heard that Universal was the only holdout, and now CNET says the deal is done -- Apple has reportedly signed all four major record labels for its upcoming iCloud service. We'll be bringing you all the confirmed details on June 6th, but while you wait, here's some food for thought: the Los Angeles Times says that Apple will eventually charge somewhere around $25 a year for a subscription to the cloud. That will help supplement the 58 percent piece of the pie it's planning to take from the music industry for songs distributed though the network, and possibly some ad revenue as well. 30 percent will reportedly go to the labels, and another 12 percent to publishers, who will apparently be signing their own agreements with Apple tomorrow. Update: There's actually an interesting discrepancy between the two sources here: the LA Times reports that Apple's taking that nice, juicy 58 percent, but CNET says that the labels will take 58 percent while Apple claims its traditional 30 percent instead. We're investigating. Update 2: The LA Times has updated its piece, with different percentages still -- reportedly, Apple will take 18 percent, publishers get 12 percent, and labels 70 percent of the proceedings.
Apple iCloud logo revealed... it's a cloud
Apple itself has already confirmed the name, and now AppleInsider has snapped some early pictures at the Moscone Center that reveal the iCloud logo / icon. Shockingly, it's a cloud.
TUAW TV Live: The forecast is iCloudy with a chance of syncing
What better way to spend a late spring afternoon than to sit inside in front of your favorite computer watching TUAW TV Live? I mean, warm weather, clear skies and singing birds are no match for the excitement of me and the chat room mixing it up on Ustream. This afternoon is no exception -- starting in about five minutes, you'll be able to use the chat tool and video feed on the next page to watch the show instead of getting a highly-overated and dangerous tan. After all, pale is the new tan... The topic today? Speculation on what's going to be said at the WWDC keynote next Monday. We know that iOS 5, Mac OS X 10.7 Lion and iCloud are topics, but what might we hear about from his Steveness as "one more thing?" From your Mac or PC, go to the next page by clicking the Read More link at the bottom of this post, and you'll find a livestream viewer and a chat tool. The chat tool allows you to participate by asking questions or making comments. If you're driving somewhere and would like to watch TUAW TV Live while you're stuck in traffic, please don't -- keep your eyes on the road! However, if someone else is doing the driving, you can watch the show on your iPhone and join the chat by downloading the free Ustream Viewing Application. If you're on an iPad, you should be able to use the Skyfire Browser to watch the stream, although you will not be able to participate in the chat. We'll start at about 5 PM ET, so if you're seeing a prerecorded show, be sure to refresh your browser until you see the live stream. For those of you who are not able to join us for the live edition, you'll be able to view it later this evening on our TUAW Video YouTube channel and as part of the new TUAW TV Live podcast viewable in iTunes or on any of your Apple devices.
iCloud offerings might be free to those who upgrade to Lion
When Steve Jobs kicks off Apple's Worldwide Developers Conference (WWDC) next Monday, AppleInsider suggests the iconic CEO may reveal an aggressive price-point for some of the Cupertino company's upcoming cloud services -- free. On Tuesday, Apple announced plans to unveil iCloud, a suite of cloud services expected to replace MobileMe, and Lion, the eighth significant upgrade to Mac OS X, at WWDC next week. According to the post, people familiar with Apple's plans expect the computer maker to offer some of iCloud's services gratis to Mac users who upgrade to Lion. But AppleInsider notes that some components of iCloud are not likely to be free for any customer. Apple recently negotiated new licensing deals with (at least) Sony, EMI, and Warner Music, and is expected to announce its own music streaming services on June 6. Much like MobileMe today and competing music offerings from Google and Amazon, Apple's upcoming music services will likely include a complimentary trial period, but customers should ultimately expect to pay a subscription fee to host content on the company's servers.
TUAW TV Live at 5 PM EDT: To the iCloud!
Next Monday could easily be one of the more important days in the long history of Apple, Inc. On June 6, Apple CEO Steve Jobs will take the stage for a keynote at the Worldwide Developer Conference (WWDC) in San Francisco to announce products and services that are going to have a profound impact on how users of Apple products will work and play. TUAW will, of course, be covering the keynote in detail, but why not get a little speculation in before the fact? Today on TUAW TV Live, I'll be hosting our viewers in an online discussion of what they expect and want from Monday's announcement. Will iCloud be available immediately after the Stevenote? Will it include Dropbox-like capabilities as well as the power to store your media in the cloud? How about integration with apps of all sorts? Will there be a new version of iWork for collaboration in the cloud? Inquiring minds want to know, and TUAW TV Live hosts and viewers want to speculate. As usual, I'll be starting the show at 5 PM EDT (2 PM PDT / 10 PM BST) sharp, and we'll take a few minutes to chat before the demos start. To join in on the chat and watch the live streaming video, drop by TUAW about five minutes before the start time to get your instructions on how to participate. If you're unable to join us for the show, remember that you can always subscribe to the video podcast and watch the show at your leisure in iTunes or your other favorite podcatching app.
Apple files for iCloud trademark in Europe
All the pieces are falling into place for Apple's iCloud service. On Tuesday, Apple confirmed the name and told us all it will be introduced at WWDC; Apple's trademark application hit the European Trademark Office later that day. The trademark covers everything from telecommunications and electronic storage to photographic services and digital devices/computers. We still don't know what cloud services Apple has in store for its iOS and Mac users. Speculation points to a new streaming media service and a digital locker to store files online. MobileMe may also get a facelift, and some of its personal information syncing or email services may be available for free. These are likely just the tip of the iceberg and Apple will wow us with much more next week. Anyone excited?
Apple's North Carolina data center now visible on Google Earth
Apple's humongous data center in North Carolina is now visible on Google Earth and Google Maps satellite view. You can see the entire building and two roads leading in and out of the compound. Oddly, there is no space for on-site employee parking, at least not yet. An eagle-eyed reader picked out at least one parking lot on the south side of the building for about 80 cars. There may be more. The high-res image of the nearly completed compound just happened to appear the same day Apple confirmed its iCloud service would be unveiled at WWDC next week. Is this timing merely coincidental, or did Apple persuade Google to withhold its latest satellite imagery until Tuesday's press release was released?
Steve Jobs will introduce iCloud, Lion, iOS5 at WWDC keynote June 6
It's official (for real, this time) -- Steve Jobs will introduce iCloud, "Apple's upcoming cloud services offering," iOS 5 and Mac OS X 10.7 Lion during the WWDC keynote on June 6. Note that iCloud is named specifically and referred to as "cloud services," suggesting that it's more than music. There has been much speculation about iCloud as a music locker, streaming service and MobileMe successor. Also, developers and customers alike have been eager to see iOS 5, and we were recently led to believe that Mac OS X Lion is getting close to a releasable state. It's going to be an exciting keynote, and we'll have full coverage. See you on the 6th! Show full PR text CUPERTINO, California-May 31, 2011-Apple® CEO Steve Jobs and a team of Apple executives will kick off the company's annual Worldwide Developers Conference (WWDC) with a keynote address on Monday, June 6 at 10:00 a.m. At the keynote, Apple will unveil its next generation software - Lion, the eighth major release of Mac OS® X; iOS 5, the next version of Apple's advanced mobile operating system which powers the iPad®, iPhone® and iPod touch®; and iCloud®, Apple's upcoming cloud services offering. WWDC will feature more than 100 technical sessions presented by Apple engineers. Mac® developers will see and learn how to develop world-class Mac OS X Lion applications using its latest technologies and capabilities. Mobile developers will be able to explore the latest innovations and capabilities of iOS and learn how to greatly enhance the functionality, performance and design of their apps. All developers can bring their code to the labs and work with Apple engineers. For more details, visit the Apple Worldwide Developers Conference 2011 website at developer.apple.com/wwdc. Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and has recently introduced iPad 2 which is defining the future of mobile media and computing devices.
Apple to unveil iCloud, iOS 5 on Monday, June 6
Had some doubts that Apple was heading skyward? Those lingering concerns can now be put to rest. Apple has confirmed that it will be announcing iCloud on June 6th, what it's calling an "upcoming cloud services offering." That will be part of the keynote for this year's Worldwide Developers Conference, known to the cool kids as WWDC. This is, of course, where everyone has come to expect new iPhones to come to light, but this year we're thinking the focus will be more on software, and indeed Apple's event notice indicates that the big highlights will be Mac OS X Lion and the next version of its mobile operating system, iOS 5. This is a decidedly non-Apple way to announce something big like iCloud, making us wonder what other surprises Steve Jobs will have for us at the event -- yes, he'll be kicking things off. As ever you can find out as it happens here, live.
MobileMe subscription about to expire? Don't renew it just yet
If you've already paid the US$99 for Apple's MobileMe service, but your account is due for renewal within the next ten days or so, it might be a good idea to hold off on renewing it for now. Apple's rumored to be heavily revamping its MobileMe service this year, and we expect to hear announcements about the service upgrades at WWDC on June 6. Some rumors even suggest that parts of MobileMe may be available at no charge after the update. It's been a perennial rumor that Apple will stop charging $99/year for much of its MobileMe service. The rumors have always suggested Apple will offer basic services (like email and over-the-air device syncing) for free, while paying subscribers will have access to things like website hosting, online photo galleries, storage options through iDisk, and now potentially wireless streaming of music via the rumored iCloud service. Year after year this rumor has failed to come to fruition, but many are hoping this is the year Apple will finally split MobileMe into two services: free/basic and subscription/full access. There's already precedent for making certain parts of MobileMe free. Find My iPhone/iPad used to be a service for MobileMe subscribers only, but last November Apple made it free to anyone with an iPad, iPhone 4 or current-gen iPod touch. The bottom line is that if you're only making limited use of MobileMe's services right now and your account is set to expire within the next couple of weeks, wait to see what's in store at WWDC before you shell out another $99 for another year. You may or may not lose access to some MobileMe features as soon as your account expires; we've been hearing conflicting reports about this from some readers, suggesting the service is indeed due for an overhaul relatively soon. You'll still have access to email services for up to two weeks after your account expires, at which point Apple will supposedly throw the switch and delete all of your MobileMe data. That means if your account hasn't expired already, you're in good shape until WWDC. Speaking only for myself, if MobileMe's email and device syncing services do indeed become free-to-all after WWDC, I'm not likely to pay for access anymore. I've made very limited use of iDisk -- it's absolutely terrible compared to Dropbox, especially the way iDisk behaves in the Mac OS X Finder -- and MobileMe's gallery service is cumbersome compared to other photo sharing services I've used. As for iCloud, I have pretty much zero interest in what I've heard of it thus far, because I don't believe the internet infrastructure where I live can handle the types of services iCloud will supposedly offer. On the other hand, if Apple knocks it out of the park with the MobileMe upgrade, I may still happily drop some cash on the service. It all depends on what we hear at WWDC.
Apple's iCloud music service will automatically mirror your iTunes library using 'high-quality' tracks?
There's been so much chatter about Apple iCloud that you'd think the streaming music service had already been announced and the deals inked. But it's still just a rumor until an Apple executive takes the stage and unleashes the Amazon Cloud Player and Google Music competitor in a spate of superlatives. That hasn't stopped Businessweek from stepping up with a good summary of all that is "known" thus far, while giving us some insight into the particulars of how the service will work and the motivations to make it happen. One revelation, sourced from three people in the know, claims that Apple will scan customers' iTunes libraries (hello, LaLa) and quickly mirror the contents on Apple's own servers -- no massive DSL-choking upload required. And Apple will do you the solid of "replacing" any low bitrate tracks with the "high-quality" versions it stores in its fully licensed music locker for streaming to your connected devices. Of course, this value-add won't come free and will certainly require a subscription fee. The cost to the consumer, though, is still very much unclear as is the service's integration with Apple's $99 per year MobileMe sham. And you know those rumors about MobileMe being offered as a free service? We wouldn't be surprised if it stays at $99 with iCloud being announced as a "free" feature update; aka, an $8.25 per month music subscription that also provides web access to your synced bookmarks, contacts, email, and calendar. Regardless, it's this subscription model that has the major labels so enthusiastic as it will finally allow them to extort fees for all that pirated audio you may have stumbled upon since Napster was loosed on an unprepared music industry a decade ago. All signs point to WWDC for this to get official but we're sure to hear more -- much more -- before the event kicks off on June 6th.
More details emerge about Apple's iCloud music service
Businessweek cites sources who claim Apple's new digital music service, which many expect to be called iCloud, will quickly scan a user's iTunes library and mirror those songs on the cloud. Users will then be able to stream and listen to those songs on any devices. Interestingly, the sources say that if a user's song isn't encoded in an acceptable quality, Apple will replace the lower-quality song with one that is encoded at a higher quality. No details of a cost for the service have emerged, but Businessweek speculates the iCloud service may be baked into the US$99 per year MobileMe fee. Apple could also offer monthly subscription plans for the service. An NPD analyst has even told Businessweek that he believes "We will come to a point in the not-so-distant future when we'll look back on the 99-cent download as anachronistic as cassette tapes or 8-tracks." We know Apple has been actively working to get the big four record labels to license the service (a step that Amazon and Google both skipped), but beyond that, not many hard facts have surfaced. An online streaming service for iTunes has been a perennial rumor, but over the past few months, as more details have emerged, it's looking like the service may be a reality as early as June or July of this year.
Apple, publishers reportedly close to completing cloud music deal
Apple's music streaming service is inching closer to launch according to industry sources. Earlier rumors suggest Apple already inked licensing agreements with three of the four major record labels, including EMI Music, Warner Music and Sony Music. The one remaining holdout is Universal Music, which is still working with the Cupertino company. Besides the record labels, Apple also needs to obtain publishing rights from the individual music publishers. Insiders claim only a small amount of cash is keeping Apple from inking these final agreements, but these negotiations can be long and messy. There is supposedly some tension between the music publishers and the record labels that has to be ironed out before Apple can launch its online streaming service. The record labels are not happy that publishers are getting the bulk of the cash Apple has put on the table for its cloud service. Wisely, the Cupertino company is reportedly playing the two music entities against each other and letting them duke it out. Apple hopes this money problem can be resolved and negotiations will wrap up in time for a WWDC announcement.
What 'cloud-based music' looked like in 1892
If you've ever spent time on hold with tech support, you've likely listened to a lot of tinny, cheesy music coming from your phone as you grit your teeth and count the seconds. Instead of making things better, hold music seems to make the minutes stretch into hours. Believe it or not, in the late 19th century people used to pay to listen to music over the phone. A French service called Théâtrophone was basically a steampunk version of Pandora Radio that allowed subscribers to have live music pumped into their homes at a price of 50 centimes for five minutes -- roughly one or two euros in today's money. Microphones set up on stage would pump live music to a central switchboard, and from there it would go out to hotels, restaurants and homes across Paris. Scientific American wrote a piece on the théâtrophone system way back in 1892, and at that time there were about 100 of the devices running throughout Paris. The system sounds downright hokey today, but it was ingenious for the time; keep in mind that this pre-dates wireless transmission via radio, much less modern improvements, such as iPhones and internet-based "cloud" storage for music. The théâtrophone system actually ran for quite a while, and it wasn't shuttered until 1932. Today, we're able to cart around weeks worth of music in a device about the size of a deck of playing cards, and if Apple's "iCloud" service really takes off, it may reach a point that we'll be able to store and stream more music than we'll actually be able to listen to in one lifetime. Meanwhile, the next time you're on hold with tech support and forced to listen to Huey Lewis and the News against your will, just be thankful that's not the only way you can get tunes into your ears.
Sony joins EMI and Warner in Apple cloud music service
Three down, one to go. Just a day after CNET suggested that EMI joined Warner Music Group in allowing Apple to distribute their music over a cloud-based service, now Bloomberg is claiming that Apple has also officially inked a deal with Sony Music. That leaves just one of the big four music labels -- Universal Music Group -- left to sign on with Apple. And as Bloomberg states, Universal is supposedly close to signing with the iPod maker soon. As I mentioned yesterday, getting all four major music labels to sign on to a cloud-based service is seen as a serious win and another vote of confidence for Apple's rumored streaming media services. Both Google and Amazon launched their online music services without any major music label support. Apple's cloud music service, expected to be dubbed iCloud, may be unveiled at WWDC on June 6.
Apple patent application suggests partial storage of music to speed up streaming
Could Apple's forthcoming cloud-based music service have a leg up in speed compared to its competitors? It might if a recently published patent application from the company actually pans out. It suggests that just a snippet of the beginning of a song (or movie, for that matter) could be stored locally on a device, and then be synced to the complete version in the cloud, which would let you begin playback "immediately" rather than having to wait for the usual buffering to take place. The patent application also explains that the streaming playback could be adjusted based on the type of communications network, and that there would naturally be various means to authenticate your device and ensure that you actually own the music you're streaming. Of course, there's no guarantee that such a system will indeed be a part of Apple's seemingly imminent streaming service, but the patent application was filed way back in November of 2009, which certainly means it's had plenty of time to implement it if it chose to.
