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Apple Negotiating Subscription Based Service

Posted on March 19th, 2008 by Chris

Apple is reportedly negotiating with the big four record labels for a subscription based service. The deal would make iTunes entire music library available on users iPod and iPhone devices for a monthly fee, or a premium of up to $100 for the lifetime of the device. In return the record labels would get a cut from the sale of iPod’s and iPhone’s.

Comments

Comment from Kyle
Date: March 19, 2008, 11:14 pm

I heard only $20

Comment from Chris
Date: March 19, 2008, 11:31 pm

Yeah $20 is what I heard also, compared to I think its $80 that Nokia has to pay them

Comment from Lucas
Date: March 20, 2008, 6:54 am

Very interesting. Not a bad idea I don’t think.

Comment from twistedriffster
Date: March 20, 2008, 7:07 am

i dunno. cause w/ a subscription, you don’t really own the songs. w/ technology changing as fast as it does, who’s to say that these music formats will be the norm in 5 yrs? then you’re gonna have to pay again later on to have em in the new format. for me, i’ll pay the .99 per song and know that i have a copy i can listen to w/out drm checking if i’m still paying the subscription fee.

Comment from Kyle
Date: March 20, 2008, 7:48 am

Apple is also the leader in DRM free music, so I am sure Steve Jobs is working his magic if this is for real. I have seen tons of interviews about why iTunes has never been subscription based, and the reason is Steve Jobs agrees with you twisted. He wants people to own their music. If the labels get $20 dollars on every iPod and iPhone sold that is a huge amount of money, because they hold the majority of the market share on players. It will make the $80 that Nokia pays look like pocket change. And look at it this way not every person who buys an iPod is going to take advantage of the subscription, so there is a profit there as well. I have tons of friends who have had an iPod for years and have not downloaded a song with iTunes. If its something like buy an iPod get a year of downloads included, or buy an iPod pay $100 bucks and have a lifetime subscription I think I would jump on it if, like you said, the music was mine forever. And I think thats the only reason iTunes would offer a subscription.

Comment from Shameson
Date: March 20, 2008, 11:44 am

I’m a little cautious, because it says lifetime of the device. Meaning that there is probably going to be some registration of the device on a time basis, or something. I’m also wondering if this is going to apply to certain iPods, more specifically the touch. Just seems to good to be true overall, there will be a catch somewhere.

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