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News
Apple Mulls "All You Can Eat" iTunes Store Option
Tuesday, March 18th, 2008 at 4:00 PM - by Jeff Gamet
Apple may be considering adding a new option to its iTunes Store that lets users download as much music as they want from the online library. Users would have to pay a premium for iPods that could take advantage of the "all you can eat" downloads, and apparently Apple is already negotiating with record labels over terms of the deal, according to the Financial Times.
The deal would give iPod and iPhone users access to the entire iTunes Store library but without the limitations that subscription services impose.
According to sources close to the negotiations, the deals with record labels are stuck on how much Apple will pay for the unlimited licensing necessary for the service to work. Appearantly, Apple is willing to pay US$20 per iPod sold, but the labels are more interested in something in line with Nokia’s $80 per device offer for its similar "Comes with Music" service.
Assuming consumers are willing to pay more for an iPod with unlimited music downloads, the deal could help boost record label sales. If so, that would be good news for record companies since sales have been steadily declining for some time now.
Apple has not commented on the alleged negotiations.
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