Edward Kirk
March 18th, 2008, 10:11 PM
<img src="http://www.iphonealley.com/images/storyimages/itunes.jpg" align="right"/>
Apple has historically competed with subscription-based music services, but the Financial Times claims to have inside information from senior officials saying that Apple is exploring the possibility of subscription-based iTunes Store access and unlimited music with the purchase of iPhones and iPods.<!--break-->
The unnamed source claims that Apple is currently in talks with major music labels to allow customers to pay more for a device in exchange for as many <em>a la carte</em> music downloads they want over the course of a year. Once the year ends, users would get the option to either renew their subscription or just keep the songs they have and buy more the normal way.
It is hoped that the system, dubbed "Comes With Music", would eliminate reservations about subscription services due to tracks being disabled upon the end of the subscription, a concept attacked by Steve Jobs as "renting music" during his introduction of the iTunes Music Store in 2003.
Plans may have hit a roadblock due to the already low prices for iTunes music downloads, according to one source. While Nokia already plans to charge $80 for their subscription, its newest opponent in the cellphone market is only willing to offer $20 at present -- a gap that may result in no deal at all if no labels agree to the strategy.
"It’s who blinks first," says one of the sources, "and whether or not anyone does blink."
Nonetheless, there may be a chance. Studies have found that many users would be willing to pay $100 for unlimited downloads during the lifespan of the product. Similar studies have found that they would pay from $7 to $8 a month for such a service.
[via <a href="http://www.appleinsider.com/articles/08/03/18/apple_considering_premium_for_unlimited_iphone_ipo d_music.html" target="_blank">AppleInsider</a>]
Apple has historically competed with subscription-based music services, but the Financial Times claims to have inside information from senior officials saying that Apple is exploring the possibility of subscription-based iTunes Store access and unlimited music with the purchase of iPhones and iPods.<!--break-->
The unnamed source claims that Apple is currently in talks with major music labels to allow customers to pay more for a device in exchange for as many <em>a la carte</em> music downloads they want over the course of a year. Once the year ends, users would get the option to either renew their subscription or just keep the songs they have and buy more the normal way.
It is hoped that the system, dubbed "Comes With Music", would eliminate reservations about subscription services due to tracks being disabled upon the end of the subscription, a concept attacked by Steve Jobs as "renting music" during his introduction of the iTunes Music Store in 2003.
Plans may have hit a roadblock due to the already low prices for iTunes music downloads, according to one source. While Nokia already plans to charge $80 for their subscription, its newest opponent in the cellphone market is only willing to offer $20 at present -- a gap that may result in no deal at all if no labels agree to the strategy.
"It’s who blinks first," says one of the sources, "and whether or not anyone does blink."
Nonetheless, there may be a chance. Studies have found that many users would be willing to pay $100 for unlimited downloads during the lifespan of the product. Similar studies have found that they would pay from $7 to $8 a month for such a service.
[via <a href="http://www.appleinsider.com/articles/08/03/18/apple_considering_premium_for_unlimited_iphone_ipo d_music.html" target="_blank">AppleInsider</a>]