Apple’s iCloud To Cost $25 Per Year After Trial Period?

iOS 5

Another day and another rumor about iCloud – Apple’s upcoming cloud based services that Steve Jobs will unveil at next week’s WorldWide Developer Conference 2011.

LA Times reports that Apple will initially offer iCloud services for free to users who buy music from the iTunes Store and later expects to charge a subscription fee of $25 per year after the trial period.

LA Times reports:

Dubbed iCloud, the service initially will be offered for a free period to people who buy music from Apple’s iTunes digital download store, allowing users to upload their music to Apple’s computers where they can then play from a Web browser or Internet-connected Apple device.

The company plans to eventually charge a subscription fee, about $25 a year, for the service. Apple would also sell advertising around its iCloud service.

LA Times also provides details about how Apple will share the subscription fee for iCloud services with record labels and publishers:

The agreements, finalized this week, call for Apple to share 30% of any revenue from iCloud’s music service with record labels, as well as 12% with music publishers holding the songwriting rights. Apple is expected to keep the remaining 58%, said people knowledgeable with the terms.

LA Times indicates that iCloud service will initially allow users to store music on Apple servers and other digital content such as movies, TV Shows etc will be allowed at a future date, which probably will happen once Apple signs deals with film studios.

In our opinion, $25 seems quite reasonable for a cloud-based digital locker, which allows users to access their music, TV shows and movies from any device. It also means that users will be able to redownload digital content purchased from iTunes store an unlimited number of times from any device. Currently, when a user buys a song, video, TV show or album from the iTunes store, the user is entitled to download it only once, a restriction forced by music labels and film studios, whereas Apple already allows users to download apps purchased from the App Store unlimited number of times from any device.

What do you think about the possibility of $25 per year subscription fee for iCloud services? Let us know in the comments.


Apple has started preparing San Francisco’s Moscone Center West for WWDC 2011 that starts on Monday. One of the banner depicts logos of  Mac OS X Lion, iOS 5 and iCloud that will be unveiled by Steve Jobs during the keynote address. As you can see the photo below (courtesy AppleInsider), it reveals the iCloud logo for the first time.

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