iClouds Don't Come Cheap
Apple has deep pockets. Record labels are trying salvage an outdated business model. The result, Apple pays EMI, Warner, Sony, and Universal between $25-50 million a piece depending on the number of tracks iTunes users are storing of theirs to approve the iCloud.
These payments are just up-front cash advances too. A nice little incentive for the companies to jump on board the iCloud train. According to the NY Post
the advance payments have been a major hold up for Google in fully implementing their cloud based music service. Google's current offering is simply a storage locker, and not a true cloud based music solution. It looks like Apple's deep pockets might force Google to buckle to the record labels' demands.
Apple has $50 billion in cash, and that number is expected to swell to $70 billion by the end of the year. A few hundred million really doesn't seem like that much in retrospect.
Tis good to own land.
Source: NY Post