Fresh Hints Offer Insights into New Apple Cloud Service (iCloud?)

Apple AAPL has reportedly signed up Sony SNE Music to its cloud-based music service, paidContent is reporting. The news is another piece to add to the rumor mill, as the much-anticipated subscription-based service gains more attention. Sony is now in a group that includes Warner Music WMG and EMI, leaving Universal Music Group as the lone major label holdout. All have been hesitant to enact licensing agreements with tech firms like Google GOOG and Amazon AMZN. According to a cNet report, "the [new] licensing agreements may let Apple employ the "scan and match" approach, allowing users to avoid the tedious and time-consuming process of uploading their music libraries to Apple's servers. The music service Lala, which Apple acquired in December 2009, made this process famous." Further, a patent application released recently could offer another clue. Steven Musil of cNet notes that "The application details a system in which music clips from a user's library are stored locally on a device. When combined with an infrastructure that can fetch the rest of a song once it starts being played, the system would provide users with a seamless music listening experience of their entire library, even without having it on the device." This could be a potentially huge offering for Apple. Considering the ubiquity of iTunes and its online store, imagine how the company could capitalize on a cloud-based service? Between an inevitable simplicity of use, cooperation with big record labels and the utilization of new technology, Apple could be looking at a fresh source of profitability. Watch for Apple to roll out a new offering in a press announcement soon. The company will likely tout software security features, a rethought perspective on music distribution, and the ability to take every song on the go.