Rumor: Apple Charging for Cloud Music Service?
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We recently reported about the imminent arrival of Apple’s cloud-based music service, but a new report released by CNET today reveals that it may not be free. According to music industry insiders, the service may be free of charge initially to attract users, but eventually, Apple is going to charge a fee.
Cloud music services from Apple and Google have been in the works since last year, with both companies discussing storage and uploading privileges with the four major record companies. This will allow users to upload music to the cloud service and access it from any Internet connected device.
So far, it’s unclear what Apple will charge, but if it’s inline with Google’s prospective pricing, it will be around $20 to $25 annually. It’s also unclear whether or not consumers are willing to pay for cloud music. At the moment, Amazon doesn’t charge anything for the Cloud Player and Cloud Drive services, unless you exceed 5GB. The company offers 20GB free with an album purchase right now, but when the promotion ends, it will be $20 per year.
One thing’s for sure – pricing will have to be low enough to entice users to pay. Right now, music subscription services don’t have a significant share in the digital market. It’s certainly better to own music (and access it from iTunes) rather than rent it, which is how most subscription services currently work.
Currently, both companies are working on securing deals with record companies. Apple reportedly has a deal with Warner Music Group and rumors of other deals in the works, but Google hasn’t made much headway. Apple’s music service is set to launch ahead of Google’s, as, according to Reuters, Apple has “completed work on an online music storage service.”
Would you pay for Apple’s cloud music service? I’m unsure if I would, because all my music is currently available on all of the devices I use. It would certainly be convenient if you use multiple computers at work and home, or when you upgrade to a new computer. But isn’t this something that should be included with iTunes, when we’re already paying over $1 per song?
