CNET is reporting that Apple may be limiting the initial launch of a cloud-based iTunes service, because -surprise, surprise -they are having trouble reaching agreements with the record labels to allow the streaming of music to internet-enabled devices. But eight months after the acquisition, Apple is telling executives at the four top labels that if […]
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Apple Limiting Initial Approach of Cloud-Based iTunes Initiative?

CNET is reporting that Apple may be limiting the initial launch of a cloud-based iTunes service, because -surprise, surprise -they are having trouble reaching agreements with the record labels to allow the streaming of music to internet-enabled devices.

But eight months after the acquisition, Apple is telling executives at the four top labels that if Apple offers any cloud-music features within the next few months, they will likely be “modest in scope” and not include the kind of functionality that Apple outlined in meetings with the labels, such as storing users’ music on its servers, sources told CNET. They added that Apple still hasn’t negotiated the kind of licensing deals it would need to distribute music from the cloud.

CNET goes on to note that, while it’s unclear why Apple can’t seem to pull things together in this initiative, there does seem to be instability in the Lala Media team that Apple acquired last December. One of Lala’s founders, who stayed with Apple throughout the acquisition, has left the company, while a team of Lala engineers are working on a video feature rather than music, as would be expected.

A movie/TV streaming service would tie in nicely with other rumors we’ve been hearing throughout the year. Such as, an Apple TV revamp, with content streaming as it’s core strength.

Another reason for the delay could be that Apple is waiting for their massive North Carolinian data center to be completed by the end of this year. From nearly the beginning, it was believed that this data center will be the backbone of any cloud-based streaming service that Apple may introduce.

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