iLounge

Apple has had the Lala team working on an undisclosed video service instead of a music offering, according to a new report. Citing unnamed sources, Cnet reports that Apple is now telling executives at the four top music labels that any upcoming cloud-based music features will be “modest in scope” and would not include functionality such as storing users’ music on its servers. In addition, Apple has yet to negotiate the licensing deals it would need to distribute music from the cloud. Sources at major film studios have indicated that Apple is planning a “digital shelves” strategy that would enable iTunes users to store movies and other media on Apple’s servers, possibly utilizing the data center Apple is building in North Carolina.