updated 07:20 am EST, Mon January 3, 2005
Subscription music model
Many of Apple's digital music rivals are rather than the pay-per-song model offered by the iTunes Music Store: "Chris Gorog is convinced that people won't continue to pay $1 a song for online music.That is despite Apple's string of recent achievements, including 200 million songs sold at its iTunes Music Store, and nearly 4 million iPod digital music players moved into consumers' homes in 2004. Gorog runs Apple rival Napster, which offers digital downloads and a music subscription deal. Consumers get unlimited access to listen to 700,000 songs for $9.95 monthly. The hitch is that to move songs onto a portable digital device or to a CD costs extra: $1 a song. That's one of the reasons digital music fans have not taken to the subscription model -- also offered by Real Networks' Rhapsody -- in a big way. But Gorog thinks that will change next year. And he has other heavyweights such as Yahoo and Microsoft in his corner."