Apple Considering "all You Can Eat" Music Service for IPhones

Apple is reported to be in talks with music companies about a new "all you can eat" tariff for music downloads - if the customers pay a one-off premium when buying an iPhone or other iPod style device. The Financial Times newspaper, citing executives familiar with the negotiations said that they hinged on a dispute over the price the computer maker would be willing to pay for access to the labelsÃ' libraries.

Apple refused to comment on the report.

Nokia, which also offers a similar package with Universal Music is understood to offer around $80 per handset sold for the unlimited access to the Universal music catalogue. Apple is said to be trying to get away with just US$20 per unit sold - and with access to more music labels.

One executive told the FT newspaper that their 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.

The Nokia deal offers unlimited music downloads for the first 12 months after the purchase of one of its music phones - and the customer gets to keep the content once the initial period has ended, although it is protected by a DRM platform. This differs from some unlimited music download services which erase the music library when the customer switches to a different provider.

On the web: Financial Times

Posted to the site on 19th March 2008