Apple Preparing Flat Rate iTunes Models

Both subscription based and pre-bundled options considered.

Apple knows it has to move with the times…

Consequently, pink money loving broadsheet the Financial Times is reporting Job’s company is looking at not one, but two methods of delivering “all you can eat” content to its customers.

First up in a scheme which mimics both Nokia’s Comes With Music and Universal’s Total Music models whereby a device will come with unlimited access to music for its lifetime. Under Apple’s approach, users would also get to keep up to 40 or 50 tracks per year once they discard the hardware.

Sticking points at this stage are said to be that it is for iPhone users only (due to their higher revenue stream) and, predictably, money with Apple offering record labels $20 per device sold. By contrast Nokia is said to pay almost $80 per handset for Comes With Music.

Second up is a more traditional flat rate subscription service giving users full access to the iTunes music library. The model would be available to iPod owners as well as iPhone users with all content becoming locked should a customer cancel their subscription.

Personally speaking, the latter is likely to arrive long before the former even if the pre-bundled model is likely to become the method of choice over time for high end products. Of course whether any of this is enough to curb the illegal download sector is another question entirely…


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