Posted
Mar 19 2008, 08:02 AM
by
Kim Peterson
After pooh-poohing music subscription services for years, Apple is talking to labels about that very idea, according to the Financial Times. It's about time. Apple could really energize iPod sales this way. But here's the twist: instead of the regular pay-every-month scenario, the fee would be bundled up front into the price of an iPod or iPhone.
In other words, if you pay more when you buy the iPod, you could get free access to all the music on iTunes for the life of the device. Executives talking to the FT said research has shown that people will pay up to $100 for that, or they would be willing to pay a $7 to $8 monthly fee for a music subscription.
Nokia has a similar deal in place for devices it's developing, and reportedly will pay music labels $80 for every device sold. Apple, in its typical drive-the-labels-nuts fashion, has only offered to pay about $20, according to the FT. Nokia is being hit hard with the news today; its shares have fallen nearly 8% this morning to $30.17. Apple shares are down less than 1% to $132.04, and shares in RealNetworks, which owns the competing Rhapsody music subscription service, are down nearly 2%. Napster shares are down 3%.
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