iCloud to be initially free and then cost $25 per year, major labels on board

LATimes reports that Apple’s iCloud service, that will be announced on Monday at WWDC will be offered for free initially with an iTunes purchase and then will cost $25 subscription fee per year. The report also claims that according to the agreements finalized this week record labels and music publishers will get their share from Apple as following.

The agreements, finalized this week, call for Apple to share 70% 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 18%, said people knowledgeable with the terms.

Apple has signed deals with major record labels including Warner Music Group, EMI Music Group, Universal Music Group and Sony Music Entertainment. The report also notes that other than Music, Apple will also offer other forms of media through its iCloud service to users that could include movies and TV Shows.