> > www.ft.com, March 19 2008 > > Apple in talks with music companies > > Apple is in discussions with the big music companies about a radical > new business model that would give customers free access to its entire > iTunes music library in exchange for paying a premium for its iPod and > iPhone devices. > > The all you can eat model, a replica of Nokias comes with music > deal with Universal Music last December, could provide the struggling > recorded music industry with a much-needed fillip, and drive demand for > a new generation of Apples hardware. > > Apple would not comment on the plan, but executives familiar with the > negotiations said they hinged on a dispute over the price the computer > maker would be willing to pay for access to the labels libraries. > > Nokia is understood to be offering almost $80 per handset to music > industry partners, to be divided according to their share of the > market. However, Apple has so far offered only about $20 per device, > two executives said. Its who blinks first, and whether or not anyone > does blink, one executive said. > > Detailed market research has shown strong appetite among consumers for > deals bundling music in with the cost of the device, or in exchange for > a monthly subscription, executives said. > > 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. > > Other music groups are understood to be in talks with Nokia, which is > keen to sign up as many of the major labels as possible before > launching its first comes with music devices in the second half of > this year. >
At last the days of CD scanning are all over. It will be a great day for consumers but the impact on Apple is pretty amazing as well: As well as killing off amazon.com and making sure they control content as well as hardware, apple can extract the best possible deal from the record comapnies due to thier larger market share and kill off competition. In addition they can drive sales of higher capacity iPods. -- willyhoops ------------------------------------------------------------------------ willyhoops's Profile: http://forums.slimdevices.com/member.php?userid=10563 View this thread: http://forums.slimdevices.com/showthread.php?t=45000
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