Apple Inc and Universal Music Group Ink Deal

Apple Inc. and Universal Music Group have completed a deal to make way for Apple’s new service “iCloud”.

The new service will allow users to store their music in Internet libraries on Apple servers.  Amazon and Google launched similar campaigns earlier in the year.  Apple, on the other hand, have successfully won a partnership with the largest music label in the United States.  This would give Apple more freedom in their services–allowing a wider range of options for “iCloud” customers.

On June 6th at Apple’s annual developers conference, Steve Jobs will formally announce the “iCloud” service.  He will most likely point out the cloud’s ability for users to use multiple devices without having to synchronize them.  Before the cloud, if users wanted to move their music from their iPhone to their iPad, they would have to manually connect the device to a computer and drag the songs through a synchronization process.  “iCloud”, in its collaboration with multiple music labels will be able to skip that process and conceivably add special promotions to sweeten the deal.

It is important to note that the service will, initially, only be available through iTunes.  Apple and the music labels will be sorting out a plan to allow outside users to store their music on Apple servers–most certainly for a fee.  The music labels will be taking the largest percentage of the “iCloud” earnings, at roughly 58%.

SOURCEwww.bloomberg.com       

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