Ars Technica citing the L.A. Times:
According to sources “familiar with the negotiations” who spoke with the L.A. Times, Apple plans to charge $25 per year to use the service, with a free trial period for those who purchase music through iTunes. The company might also sell ads to be served on iCloud, and users will (still) be able to stream their music to any computer with a Web browser or an iOS device. The Times did not specify whether iCloud would include other, non-music-related services.
The last holdout of the big four music labels, Universal Music Group, has signed on with Apple’s service yesterday. Cupertino will finalize agreements with music publishers today, just in time for next week’s iCloud release at WWDC.
The L.A. Times detailed Apple’s music deals:
The agreements, finalized this week, call for Apple to share 30 percent of any revenue from iCloud’s music service with record labels, as well as 12 percent with music publishers holding the songwriting rights. Apple is expected to keep the remaining 58 percent, said people knowledgeable with the terms
Little is known whether Apple will also offer a video storage and streaming service or what other benefits iCloud will have. However, you can bet it will make a big splash and be well integrated into OS X Lion.