aTypical Joe: a gay New Yorker living in the rural South
Wednesday, March 19, 2008
Bundled unlimited iTunes with iPods?
A report by the Financial Times (registration required) cites unnamed executives who say that Apple is in talks with record labels to offer access to the entire iTunes music library for a lump sum price. The fee would be added as a premium option on an iPod or iPhone, or it could come as a monthly charge. It would allow downloading of any song at any time so long as the purchaser still owns the device, and the songs would be yours to keep.
This latest concept is similar to Nokia’s ”Comes With Music” program set to launch later this year. Nokia is reportedly rolling an $80 fee into the price of compatible phones for one year of access to Nokia’s music store, which includes music from labels like Universal.
Apple’s plan is different in several respects. Since the average iPod owner buys about 20 tracks from the iTunes, Apple wants to make the premium about $20, arguing that it should cover the average consumer’s downloads. Then the owner can make unlimited music downloads from the iTunes Store for the life of the device. Once downloaded, the tracks are yours to keep, even if you get rid of the original iPod or iPhone. And since iPod and phone owners tend to replace devices fairly regularly, the record labels would be getting the fee whether or not the consumer makes any further downloads. Silicon Alley Insider did the math and thinks it’s a good deal all around. But according to the Financial Times’ sources, the labels are looking for numbers closer to the $80 Nokia is reported to be paying.
