Apple supposed to offer iCould service free with OS X Lion Upgrade.
Yesterday Apple told the world that the Apple cloud services will be called iCloud. Apple will unveil the details of iCloud on June 6th during the WWDC 2011 keynote held by no other than Steve Jobs. it is expected that iCloud will be comprised of mobileMe and iTunes services. AppleInsider just published a report that people familiar with Apple's iCloud plans say that iCould services will be free with the new OS X Lion Update.
The iCloud music service would likely be excluded from this deal. The motivation for Apple to offer iCloud for free is to get every Mac user upgraded to OS X Lion as fast as possible. Additionally one of the reasons mobileMe never took off was because of the $99 a year price-tag.
Apple is also supposed think about offering the OS X Lion Upgrade for a low price through the App Store. OS X Snow Leopard had a price of $29. If Apple is going lower than this is not clear, but possible.