The
Financial Times reports Apple is in talks with the major music labels to develop a music subscription model for iTunes.Apparently, two pricing schemes are being bandied about.
The The Times writes, one model would "give customers free access to the entire iTunes music library in exchange for paying a premium for its iPod and iPhone devices." This would give folks unlimited music access for the lifetime of their device. The other pricing model has people paying monthly (say, $7 to $8) for an unlimited iTunes subscription.
Expanding its pricing model to include all-you-can-eat music plans could help Apple expand its dominance over the mobile audio space, both in terms of downloads and, especially, iPod and iPhohne device sales After all, wasn't the original intention of iTunes to drive iPod sales?
While there will always be people who need to own their music, and this is still the majority, I have a feeling plenty of people would be willing to give an iTunes subscription a shot.
Yes, this model - in terms of a flat monthly fee - hasn't been all that successful with services like Napster, but, let's face it, these other services aren't iTunes and the players they're compatible with aren't iPods or iPhones. Those simple facts could make all the difference for Apple, which - by the way - isn't the only mobile-device giant looking into bundling unlimited music with its devices.
Starting sometime during the second half of this year, Nokia says it would offer free music from Universal, the world's largest music group, on its music phones through a offering called "Comes With Music." The idea behind the agreement is to simulate demand for 'official' music downloads, take a significant swipe at peer-to-peer file sharing networks, and, of course, challenge Apple's digital download hegemony—both on the hardware (iPod) front and software (iTunes) side of the business.
With “Comes With Music” users will be able to download as much music as they like during the free 12 month period, much shorter than Apple's purported device-lifetime of music. When it’s over, they’ll even get to keep all the tracks they’ve downloaded—even though they've paid nothing outside the cost of the mobile handset itself and the usual data charges.
Perhaps Nokia's "Comes With Music" was the kick in the pants Apple needed to start speaking seriously with the major music companies about going the premium unlimited and subscription service route with iTunes?
Personally, I prefer the eMusic method. With eMusic you pay a fixed monthly fee to get a certain number of downloads. The more you pay the more music you get and the better the deal when it’s parsed down to the per-track level.
[via internetnews.com]
