Report: Apple, Labels in Talks on Mobile Music, iTunes Pricing

Authored by Mark Hefflinger on May 19, 2008 - 11:16am.

New York - Apple (NASD: AAPL) is in talks with some of the major labels on offering a wider selection of ringtones and a mobile music delivery service, while at the same time the labels are pressing Apple to budge on its 99-cent song pricing at the iTunes Store, The New York Times reported. Apple is reportedly very interested in offering ringback tones, as well as over-the-air song downloads to the iPhone -- both of which are traditionally priced higher than regular ringtones and PC-based song downloads, respectively.

Apple has stood firm on its 99-cent song download pricing at the iTunes Store, while the labels have continually pushed for more flexible, variable pricing -- where new releases and hits could be priced higher than 99 cents, while older tracks might cost less.

"They want a big launch in June," one label executive familiar with the discussions told The Times.

Apple is widely expected to introduce a next-generation 3G iPhone at an event on June 9.

The Times also reports that Universal Music Group is also still pitching Apple on offering a digital music subscription service, where an iPod would come pre-loaded with music and allow unlimited downloads in exchange for a monthly fee -- along with an upfront, per-device payment to participating labels.

 

Related Links:
http://snipurl.com/29o2d (N.Y. Times Bits Blog)

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