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Apple CEO Not Interested In Music Subscriptions
Wednesday, April 25th, 2007 at 3:00 PM - by Jeff Gamet
Apple CEO Steve Jobs isn't interested in adding a music subscription service to the iTunes Store, and will likely fight the record labels as they try to pressure Apple into adopting a model he sees as unpopular. Apple will begin negotiating contract renewals with the record labels next month, according to Reuters.
Mr. Jobs commented "Never say never, but customers don't seem to be interested in it. The subscription model has failed so far." Instead, customers seem more interested in owning the music they download.
Record labels, however, would love to see the top music download service abandon the pay-per-song model in favor of a subscription-based service. The music industry prefers the subscription model idea because consumers pay for the same songs over and over again, potentially generating additional revenue.
In addition to fighting the labels over subscription music, Apple will also likely be pushing for copy protection-free deals. The company has already inked a deal with EMI, and is looking to get additional labels on board.
"There are a lot of people in the other music companies who are very intrigued by [DRM-free song deals]. They're thinking very hard about it right now," he said.
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