NYT: Apple Discussing iTunes All-You-Can-Eat Downloads With Labels Next Week

Illustration for article titled NYT: Apple Discussing iTunes All-You-Can-Eat Downloads With Labels Next Week

The New York Tiimes' Saul Hansell backs up the Financial Times report that Apple's looking at all-you-can-eat downloads for iTunes. According to his source, Apple is sitting down with the studios next week for an undoubtedly tense poker-faced showdown.

Advertisement

Universal's the biggest proponent of selling subs, so they'll probably be there. Reportedly Apple wants to throw the labels $20 a device, which is only a little more than what the labels make off an iPod now in music sales, so they've got some gaping chasms to negotiate across. [Bits]

DISCUSSION

@Gofastmazda: "I seriously doubt they're talking a one time $20 fee for unlimited music for the life of their device, how would that make any sort of financial sense?" — If the labels average less than $20 per iPod in music sales (as reported), then a $20 fee per device would be a step up for them.

As for Apple, they don't give a damn about making money on music. Apple makes money selling devices. Music sales drives iPod sales. iPod sales does that halo effect to drive Mac sales. If they could afford or arrange to give away music, they'd do it because it would ultimately lead to fatter profits.