According to Financial Times Apple is in talks with big music companies to use a completely new business model for iTunes. The kind of "all you can eat" model would give premium iPod or iPhone owners free access to the whole iTunes music library.
The plan would be that customers pay for the music library access when they buy their iPod or iPhone, the same kind of model that Nokia has branded with the new Comes with Music service. The first Nokia Comes with Music device will arrive in the second half of the year.
Even though Apple representatives did not comment on the business model, sources said that they were negotiating over the price that Apple would pay to their music industry partners for every sold device. Nokia was said to pay almost $80 while Apple hasn't offered more than $20.
According to an executive, a research has shown that a consumer would pay up to $100 for an unlimited access to music and $7-8 for a monthly subscription. The monthly subscription would work with iPhones because customers have a monthly billing Period and the "comes with music" or "all you can eat" model would work on both iPhones and iPods.
The new business model could be just what the music industry needs and could even boost the sales of next generation Apple devices.
Even though Apple representatives did not comment on the business model, sources said that they were negotiating over the price that Apple would pay to their music industry partners for every sold device. Nokia was said to pay almost $80 while Apple hasn't offered more than $20.
According to an executive, a research has shown that a consumer would pay up to $100 for an unlimited access to music and $7-8 for a monthly subscription. The monthly subscription would work with iPhones because customers have a monthly billing Period and the "comes with music" or "all you can eat" model would work on both iPhones and iPods.
The new business model could be just what the music industry needs and could even boost the sales of next generation Apple devices.
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