Apple's iCloud music service will automatically mirror your iTunes library using 'high-quality' tracks?

There's been so much chatter about Apple iCloud that you'd think the streaming music service had already been announced and the deals inked. But it's still just a rumor until an Apple executive takes the stage and unleashes the Amazon Cloud Player and Google Music competitor in a spate of superlatives. That hasn't stopped Businessweek from stepping up with a good summary of all that is "known" thus far, while giving us some insight into the particulars of how the service will work and the motivations to make it happen. One revelation, sourced from three people in the know, claims that Apple will scan customers' iTunes libraries (hello, LaLa) and quickly mirror the contents on Apple's own servers -- no massive DSL-choking upload required. And Apple will do you the solid of "replacing" any low bitrate tracks with the "high-quality" versions it stores in its fully licensed music locker for streaming to your connected devices.

Of course, this value-add won't come free and will certainly require a subscription fee. The cost to the consumer, though, is still very much unclear as is the service's integration with Apple's $99 per year MobileMe sham. And you know those rumors about MobileMe being offered as a free service? We wouldn't be surprised if it stays at $99 with iCloud being announced as a "free" feature update; aka, an $8.25 per month music subscription that also provides web access to your synced bookmarks, contacts, email, and calendar. Regardless, it's this subscription model that has the major labels so enthusiastic as it will finally allow them to extort fees for all that pirated audio you may have stumbled upon since Napster was loosed on an unprepared music industry a decade ago. All signs point to WWDC for this to get official but we're sure to hear more -- much more -- before the event kicks off on June 6th.

Businessweek

Google Music Beta invites start rock 'n rolling out

Been on pins and needles since Google unveiled its long awaited Music Beta service at I/O? Good news: it seems that the non-Xoom owners among us are finally getting a crack at the thing. We've received reports from numerous tipsters that El Goog has finally started delivering invites to those who signed up through the site, letting even more users upload 20,000 of their favorite jams to its cloud-based storage locker. If you're one of the lucky ones, please sound off in the comments below -- and if not, be sure to read our hands-on review of the service while you wait.

Google Music Beta

What stalled negotiations between Google and the music industry? (Hint: money)

It's no secret that negotiations between Google and the recording industry haven't been going very well. Perhaps even less surprising are the reasons behind the stalemate. According to the Hollywood Reporter, discussions between the two parties have sputtered thanks to three usual suspects: money, file-sharing and concerns over competition. During licensing talks, Google agreed to pay upfront advances to all participating labels, but the major players wanted bigger guarantees. That prompted the indie contingent to ask for similar money, unleashing a snowball of stakes-raising. The two sides also failed to agree on how to handle pirated music, with the industry demanding that Google not only ban illegally downloaded files from users' lockers, but that it erase P2P sites from its search results, as well.

Hovering above all this bargaining was a thick cloud of destabilizing uncertainty. Some execs welcomed the idea of a new iTunes competitor, while others were less enthusiastic, amid concerns that Google Music wouldn't deliver new revenue streams. The ultimate question, of course, is how negotiations will proceed now that Google's already launched the service. The labels were warned that Tuesday's I/O announcement was coming, but the search giant didn't do much to mend fences when it effectively blamed the record execs for holding up negotiations. It's hard to say whether Google's bravado will help or hurt matters, but according to a source from a major label, "People are pissed."

The Hollywood Reporter