All you can eat? On iTunes?
March 18th 2008
Financial Times reports that Apple is in discussions with the major music labels about a radical new model that would give customers "free" access to the iTunes music library in exchange for a premium on the iPod and iPhone.
Whereas Nokia via its "comes with music" product is said to pay almost $80 per device to the labels that's divided according to relative market share, Apple is only offering about $20 per device.
"It's who blinks first, and whether or not anyone does blink," said an unnamed executive in the know.
This "all you can eat" model, a play on the Nokia / Universal "comes with music" program, could provide the struggling music industry with a much-needed fillip and drive demand for Apple hardware.
Editor's note: Apple must see Nokia as a threat in the mobile space, otherwise I doubt they would entertain the notion of subscription in any way, shape or form. Moreover, given the laundry list of things the labels already want from Apple--zero user rights, higher prices, restrictive bundling, etc--I doubt that iPhone subscriptions are the only matter being discussed.
Then again, maybe the labels are desperate and willing to cave to Apple...
What's your take?
