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Apple discussing alternative iTunes models?

updated 11:35 pm EDT, Tue March 18, 2008

Alternative iTunes models

Apple is reportedly discussing a new iTunes store business model with record companies which would grant iPod owners unlimited access to the library by paying a slight premium for the devices. According to The Financial Times, the plan resembles the Nokia "Comes with Music" deal, wherein Nokia pays record companies almost $80 per handset; Apple is reportedly limiting its offer to $20 per device.

While not announced in any official manner by Apple, two executives who claim to be familiar with the matter say the negotiations are currently in hiatus, due to a disagreement on cost. Supposedly, one executive said research indicates that consumers would be willing to pay a $100 premium for unlimited access to the complete iTunes music catalogue.

Another option is purportedly a subscription model, of which users could pay around $8 per month for similarly unlimited access, where they could keep up to 50 of tracks per year, regardless of if they kept the device or maintained a subscription.

Apple CEO Steve Jobs has long disdained subscription models, saying that they have failed to prove a value to customers, who would rather own their music than rent it.

Almost a year ago, several in the industry claimed that Apple was reconsidering its stance on iTunes subscriptions.




by MacNN Staff

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Comments

  1. danviento

    Joined: Dec 1969

    0

    really?

    Raise your hand if you think these guysa are full of it. My goodness, that's a lot of you...

  1. testudo

    Joined: Dec 1969

    0

    Re: really

    I think Apple is full of it if they don't do this because they think their entire library of music is worth all of $20.

    A $100 for the ability to play whatever music I want for the next several years? Yeah, you're right, that's just ridiculous. I'd much rather pay $1000 for the privilege of listening to a smaller sampling.

  1. hayesk

    Joined: Dec 1969

    0

    re: re: really

    I'd rather be able to listen to my music as long as I want on any device I own, not for a fixed amount of time on only one device.

    This is a stupid idea.

  1. talisker

    Joined: Dec 1969

    0

    re - hayesk

    But a $100 premium for a few years of unlimted music use sounds pretty good to me. A great way to sample loads of music for little risk. For the music you discover that you want to keep, well you can go out an buy a CD or whatever you want.

  1. JTh

    Joined: Dec 1969

    0

    Would like to see it.

    I have gone into this in way more detail on a post awhile back, but I do have another subscription service. Obviously, I can't use it with my iPhone. Otherwise, I'm extremely satisfied with the service itself, but the device I use is mediocre. I would gladly be first in line to buy an all-Apple subscription service, but I won't go back to paying for music that I either listen to only a couple times, or end up regretting buying. As mentioned above, you can always buy the CD if it's something you do want to keep!

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