Apple is expected to charge a fee for its upcoming cloud based music storage and streaming services, it has been revealed.
Music industry insiders have told CNET that the company will offer the service for free to early adopters but will eventually start charging money for its cloud service.
Apple is expected to run its cloud based services, for both iTunes and MobileMe, from its $1 billion data center in North Carolina. The massive data centre is expected to go live this month.
However, official news concerning Apple’s cloud ambitions have been kept under wraps. It is not clear whether the company will offer Amazon-like storage service or will go for Spotify’s model. Either way, the existing base of iTunes customers gives Apple a big advantage in cloud-based music services.
Google is also planning on launching its own cloud based music storage and streaming service and has been in talks with music companies since a year. But, as music companies are unsure about the impact of the cloud on their existing business model, they are hesitant, causing the search engine giant to delay launching the service.
Spotify is reportedly in talks with Google to launch music streaming services in the US. The company currently operates within Europe.