Skip to Content

Rumor: Apple to offer iTunes subscription model

According to the Financial Times, Apple is (still) considering an "all-you-can-eat" subscription model, which is strange, because why would anyone want to eat digital music? They must mean "listen." Yes, as speculated before (in order to figure out what Jobs will be doing in a year, just listen to what he says he won't do now, apparently), Apple might come up with a plan where you would pay either a monthly fee or a lifetime subscription to download music from iTunes presumably straight into your iPod or iPhone.

Supposedly what's holding the deal up isn't the price negotiation between consumers and Apple, it's between Apple and the record companies. Nokia, which is planning a similar deal, is reportedly happy to pay $80 per device to the music companies for the rights, but Apple is only offering $20.

Which makes sense -- Apple is the 800 lb. gorilla in the media device market, and so they have the ability in most cases to pay what they want or not bother. If the two sides do come to a deal, however, even the terms of property are still up in the air. A few ideas being bounced around would let consumers keep a certain number of songs even if they changed devices, while some deals would only allow access while the subscription was active.

What this may mean for us as consumers, at least, would be that Apple is planning to bring the iTunes Wi-Fi Music Store to even more devices in the iPod line (or at least expand the capacity of the iPod touch to hold a subscription collection like this). If Apple really is planning to open up their library to a subscription, they should make it as easy as possible to obtain the music on demand.

According to the Financial Times, Apple is (still) considering an "all-you-can-eat" subscription model, which is strange, because why would...
 

Add a Comment

*0 / 3000 Character Maximum

22 Comments

Filter by:
Symeon Hunt

would this include unlimited access to tv shows aswell do you think?

March 24 2008 at 6:06 PM Report abuse rate up rate down Reply
Shawn McBee

Everyone seems to be arguing the merits of subscription vs the current model, but you're all overlooking the real reality of the situation:
Apple has repeatedly balked at the idea of a subscription service and, in doing so, has built the second-largest music retail outlet in the world! Projections have them over-taking Wal-Mart and becoming the single largest retailer of music on the planet before long.
This is not a circumstance that lends itself to a need or desire for re-tooling the business model. They've had nothing but steady growth since the launch of the iTunes music store and changing the business model now would risk the incredibly huge standing they have in that market.
In short: it will never happen.

March 20 2008 at 1:13 PM Report abuse rate up rate down Reply
1 reply to Shawn McBee's comment
Bob

"Apple has repeatedly balked at the idea of a subscription service"

They have also balked at the idea of video on the iPod and an Apple Cell Phone. I'm not arguing because you make several valid points: I'm just pointing out that Apple often proclaims one view point then changes their mind the next week so anything is possible.

March 20 2008 at 4:53 PM Report abuse rate up rate down Reply
Bob

Sure, this would be nice to have but the killer app would be pay $20 a month for access to music, TV shows, and Movies! Good-bye radio, good-bye Comcast, good-bye Netflix.

March 20 2008 at 12:08 PM Report abuse rate up rate down Reply
basscadet

subscription model applies to all those people who don't collect music and just use it like a portable radio. All those people that listen to disposable mainstream hits would probably buy this model (although I find it hard to think why would someone without strong musical preferences not prefer simple radio).

Soulseek, DC++ and torrents is best model still.

March 19 2008 at 1:42 PM Report abuse rate up rate down Reply
Wojtek

And when is Apple finally going to fulfill the demands of European Union and offer the iTunes Store to all countries of the EU?

March 19 2008 at 1:12 PM Report abuse rate up rate down Reply
cylonite

what is so great about a subscription model for customers? we feel compelled to download songs that we dont want, in order to justify they subscription.

March 19 2008 at 10:24 AM Report abuse rate up rate down Reply
mekon

What I would love is a TV/Movies allyoucaneat subscription. Especially if they got Universal onboard, i'd strongly consider getting an appletv then, especially if it were cheaper monthly than cable.

March 19 2008 at 10:21 AM Report abuse rate up rate down Reply
Adam Searle

I'd love to have the option of paying another $100 for an ipod touch, and having unlimited music for the life of the device! Or attach $5/month onto the bill of an iphone.

I'd like a way to transition that music to my next i***, presuming I opted for the 'all you can eat' option again, without having to redownload etc. But thats just a transition issue

Oh, and does itunes on my mac get in on this? That would sweeten the deal

March 19 2008 at 10:03 AM Report abuse rate up rate down Reply
acidscan

Failed model ? I LOVE the subscription model, why am I gonna BUY a song that after 10 times I don't wanna hear anymore ?

March 19 2008 at 10:00 AM Report abuse rate up rate down Reply
4 replies to acidscan's comment
Chad

Steve has always been against the subscription model and has been quoted as such multiple times. There's no reason why Apple would add a failed model (many times over) to something that works.

March 19 2008 at 9:50 AM Report abuse rate up rate down Reply
1 reply to Chad's comment
π

Quoth the Steve:

""Never say never, but customers don't seem to be interested in it. The subscription model has failed so far."

"The subscription model of buying music is bankrupt. I think you could make available the Second Coming in a subscription model and it might not be successful."

The article, if anyone actually read it, is mostly speculation

March 21 2008 at 12:19 PM Report abuse rate up rate down Reply
Buy an ad here

Hot Apps on TUAW

Tweets

© 2012 AOL Inc. All Rights Reserved.