Reports: Apple in Talks with Labels on Unlimited Music Services

Authored by Mark Hefflinger on March 19, 2008 - 7:40am.

London - Apple (NASD: AAPL) is in talks with the major record labels on possible new models that would see music come pre-loaded, or be available through unlimited subscription plans on its iPod and iPhone devices, the Financial Times reports. While Nokia (NYSE: NOK), which signed a deal with Universal Music for an unlimited "Comes With Music" service, will reportedly pay nearly $80 per handset to music companies, Apple is offering only about $20 per device, two executives familiar with the negotiations told FT.com.

According to CNET News.com, Apple began talks with Universal Music six months ago on offering devices with pre-loaded music, and since then has opened similar discussions with the other major labels.

Under the proposal, Apple devices would come with a certain amount of pre-loaded music that, after six months or a year, would shift to a subscription model, a source told News.com.

FT.com reports that subscription models under discussion would let consumers keep 40 or 50 tracks per year, which would be retained even if they change devices or their subscription lapses.

The paper also cited an executive who said detailed market research has shown that consumers would be willing to pay a $100 premium on the price of a device for unlimited music access for the lifetime of the device, or a monthly subscription fee of $7-$8.

 

Related Links:
http://snipurl.com/224k2 (Financial Times)

http://www.news.com/8301-10784_3-9897871-7.html

http://snipurl.com/224r3 (DMW previous coverage)

Poll: Is Unlimited Music Subscription Plans For Apple's iPod and iPhone a Good Idea?

 

 



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