Late this week music industry sources stated that Apple's forthcoming iCloud service will have an initial period where it is free for iTunes store customers but will eventually cost $25 per year.
The report from the LA Times does not make it clear whether the cost refers to the whole iCloud service or just the 'iTunes locker' and streaming aspect. The report also notes that Apple will "sell advertising around its iCloud service," a service which the company expects "to be used for movies, TV shows and other digital content sold through iTunes."
Apple has also reportedly signed a licensing deal with Universal Music Group which means all four major labels are onboard for Apple's iCloud service. CNET cites "sources with knowledge of the talks" when explaining that Apple has reached deals with "some of the large music publishers."
On Monday, June 6 Apple will kick off its annual Worldwide Developers Conference in San Francisco. WWDC 2011 will run from June 6-10 and the opening keynote will be hosted by Apple CEO Steve Jobs. The company has already outlined that it will discuss iOS 5, iCloud and Mac OS X Lion.