Report: Apple in “Unlimited Music” Talks With Labels
As its iTunes Music Store closes in on the #1 spot among music retailers in the U.S., Apple is reportedly in talks with the music industry about a radical new business model that could forever alter the way both Apple and the labels approach music.
According to the Financial Times, Apple is in negotiations with the major record labels to establish an “all you can eat” model, under which a consumer purchasing an iPod or iPhone device would gain unlimited free access to the iTunes Music Store catalog, in exchange for paying a premium for the device at the point of purchase. The size of the premium is subject to negotiation, but is thought to be in the $100 range.
What remains unknown is how far the talks have progressed, which record labels are involved in the negotiations, and whether the “all you can eat” option would be the only model available for Apple consumers.