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Financial Times: iTunes All-You-Can-Eat Music Downloads Coming

The Financial Times has a piece claiming that Apple has been in deep talks with music companies about an all you can eat music download service. The piece speaks with authority, citing that while Nokia pays the labels $80 per handset for such a service, split according to marketshare, Apple has only offered $20. Hence the delay.

The article also cites an anonymous executive who claims consumers would pay $100 extra for a device with lifetime music downloads, or $8 per month. Comparatively, Zune's pass is $15 a month. Apple's doing well with current music store sales, in second place behind Wal-mart. So one has to wonder what their motivation would be for such a setup. Total domination? [FT]

8:04 PM on Tue Mar 18 2008
By Brian Lam
9,069 views
37 comments

Comments

  • Image of Kaiser-Machead Kaiser-Machead at 08:11 PM on 03/18/08 *

    Jobs has been known to go back on his claims, but I have serious doubts about this. Are comparable services even really successful right now?

  • I was going to say the same thing. Has any music rental plan ever really worked? I'm sure my parents would enjoy it because it makes it easy to fill an mp3 player.

  • these all you can download deals always have lots of restrictions and small print, i hope its not true, apple likes everything to be laid out simple, like their product range or phone tariffs.

  • @Kaiser-Machead: Lots of things don't become a success till Apple shows them how to do it.

    The MP3 player wouldn't be where it is today without Apple, same goes for USB, WiFi and Firewire.

  • I'd only pay $100/device if the songs could be stored on a computer (and played on one as well). And I want the songs DRM free, too. This isn't going to happen, but if 1/3 of the device cost is for music, I expect it to be non device-specific.
    Or, at least, let me buy a nano and if I decide to upgrade to a classic or touch, let the songs be used on those too. I would be O.K. with brand-specific limits, since I think iPods are the only good MP3 player choice at this time.
    I've started to hate my Zune. The software is atrocious.

  • So, why exactly is Walmart no.1? Is it die hard loyalists, or are the devices themselves pushing their revenue cycle? Better markup maybe?...

  • @MagnoliaBoy: I'm fairly sure that Walmart is only nr.1 in retail music sales, not online.

  • Image of Kaiser-Machead Kaiser-Machead at 08:28 PM on 03/18/08 *

    So now I have one more question:

    If iTunes gets a subscription, would this mean that all iPods would be able to be accounted for under a subscription model, thus get updates/new applications for free?

  • KK minus all the sprawling Fanboyism (Yes Scoobydoo I mean u) - True, no music rental service has set foot on to prime time music distribution chains yet. But (and yes I know it failed; that is for other reasons inapplicable to Apple) as seen with companies like Qtrax and other of the same idea (Google), free music distribution could work as a real business model. Just think about it, either for flat fees to cover the projected download or coverage via advertisement (Qtrax/ Google) the idea really isn't too farfetched.

    Beside most of America is old and computer illiterate, what an easier way to leech from Wal-mart that to offer an "easier" alternative.

  • @scoobydoo: No, they're talking online, although I understand how it's hard to believe. I don't know anyone that's bought music from Wal-Mart online.

  • But I thought "people want to own their music"

    Jobs lies again.

  • mmmmm greasy chinese buffets. no doubt from somewhere that had either "dragon" or "great wall" in the title.

    Or maybe "SUPER".

    SUPER DUPER BEIJING/SHANGHAI GREAT WALL OF CHINA DRAGONS RULE BUFFET.

  • mmm Chinese buffets. No doubt the greasy American kind. With some fobby name.

    SUPER DUPER BEIJING/SHANGHAI GREAT WALL OF CHINA DRAGONS BREATH BUFFET

  • psh. first time it didnt load and when i retype it it shows up.

  • @Kaiser-Machead:
    Good question. So if a company sells hardware packaged with software, and offers free updates to the software, then they have to defer the revenue on the sale triggered by the software. By charging for updates the company can recognize all the revenue up front on the sale. So as soon as anything packaged with the hardware triggers revenue deferral, the company has no reason to charge for software updates any more (except for greed) since they'll have to defer anyways. If the subscription is built into the price, my guess is it would trigger revenue deferral on the hardware and then there would be no purpose in charging for subsequent SW updates. If the subscription is sold separately, then I'd get ready to keep forkin' over your dough.

  • Looks like 99 Ranch market(bay area) Lunch box Isle.

    Do I get a price?

  • @Spyrojoe: Apparently it does NOT include Online sales:

    [www.betanews.com]

  • I would pay $100 for lifetime free music downloads for my iPod/Phone/Tunes...

  • @mferrari: "Or, at least, let me buy a nano and if I decide to upgrade to a classic or touch, let the songs be used on those too. I would be O.K. with brand-specific limits, since I think iPods are the only good MP3 player choice at this time. "

    That is possible... right? I think it would be stupid for Apple to not let you upgrade your product and not be able to use the music ...

  • I vote "total domination". Anti-iTunes folks persistently cite the lack of an all-you-can-eat option as the holdout issue for them, which is certainly a valid issue. Take out that roadblock and the other guys get cut off at the feet. They better hope it doesn't happen.

  • Image of tamoko tamoko at 09:52 PM on 03/18/08 *

    @sumocat: It creates an even bigger steamroller to smash the competition. Jobs might be flighty sometimes, but if he puts this into action, it will push physical music sales even further down the toilet. Maybe then the RIAA will figure things out, and pull their upper torsos out of each others asses.

  • Best part about my Zune is the Zune Pass subscription. I could care less about owning music. Same with DVD, Blu-Ray. I'd never be fool enough to be paying .99 for a single track on iTunes.

  • Napster and Rhapsody have been doing this. I love it. I get to download whatever/whenever for $15. I think I get 3 computers and 3 mp3 players the files (with DRM) will work on, but considering I only have 2 computers and 2 players that suits me fine.

    Best part is I can (and do!) change it constantly. I have a short attention span. Only thing that'd make it better is if more record labels were participating. Some of them only have 30 sec clips and I hate that.

    I hardly think this idea is revolutionary, but if apple gets on board we'll likely get ALL music on subscription services in the future and that'd be ideal.

  • The only time I ever use iTunes is when I want to download a song that isn't common enough to be found on any popular P2P networks.

    99c is a reasonable price to pay.

  • If its $100 for a lifetime and i can listen the songs on my computer i would be completely sold...with or without the DRM :P

  • @robbywil: Wow. A truly insighful comment. Thank you.

  • Insightful, even.

  • I still refuse to rent music.

  • From the cited article:

    One executive said the research had shown that consumers would pay a premium of up to $100 for unlimited access to music for the lifetime of the device, or a monthly fee of $7-$8 for a subscription model.

    Apple, which is thought to make relatively little money from the iTunes store compared with its hardware sales, is also understood to be examining a subscription model.

    Subscriptions would work only for its iPhone devices, where it has a monthly billing relationship with customers through the mobile phone operators offering the device, while the "comes with music" model would work with iPhones and with iPods.

    The subscription models under discussion in the music industry include the provision for customers to keep up to 40 or 50 tracks a year, which they would retain even if they changed their device or their subscription lapses.

    So the devil is in the details, of which there are precisely ... none. Too soon to tell. I'll weigh on and say the lack of a subscription model is what keeps me from going into Apple offerings more than I have. I know it's hard for applets to understand this ... but there really is a business model which allows choice in this area ... subscribe OR own-you can chose. It really isn't that complicated of a proposition to understand. Given the ubiquity of the iPod ... this would seem to be a no-brainer ... some sort of scheme like this would result in an entirely new revenue stream.

  • We should all limit our dowloads for a while and see if that has any influence

  • any inclusion of a rental or subscription method would purely be apple adopting a 'me too' mentality to compete with the zune pass, and nokia, rather than a true heart-felt attempt at getting it right.

    except of course, the zune pass isn't limited to one model from the range, and never will be.

  • DRM-free and an optional 320 bitrate, you could sign me up.

    I don't see how artists would benefit though.

  • Woooooooooooooo!
    .
    .
    .
    .
    Nevermind, Meh.

  • This makes no sense. With a Vegas Buffet music subscription, why wouldn't you just download, umm, everything?

    And once again Vader is in the cafeteria line without a tray. Mr. Steven's shant be pleased.

  • if DRM free and in a more universal format, i will drop zune and get an ipod.

    they need to read a page from amazon's book.

  • I won't buy another iPod player until Apple offers some sort of music subscripton. (And over the years, I've bought a ton of iPods). With roughly 4,000 tunes (most ripped from CD's) in my library, I own most of what I want.

    What I want now is the ability to listen to music I wouldn't otherwise buy. I enjoy a Rhapsody subscription at home, but haven't found a portable yet that I would buy for the "to go" service.

  • @kibets:
    you're such a fag

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