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| 07-06-11 / 01:07 : iCloud / major labels fees (cjed) |
| Apple paid about $100-150 million to major labels to provide access from everywhere to their customers to their previously paids iTunes songs. The service will be free for some time, then about $25 a year. Apple will then share 70 percent of revenues with the major labels and 12 percent with the publishers, while keeping 18 percent. Annual fees for technical access seems fair, however labels shouldn't receive anything for this, as it is for personal use/listening, and it isn't really different than carying a CD on a portable player (or many CD copy on a memory-based player). Such service would have been better targeted to indie artists as customers would be more inclined to pay a subscription fee for listening to many more unknowns artists, than pay twice for knowns ones or full album price per indie artist (as without hints they would have to try many to find some they like). |
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