Entertainment
Financial Times: iTunes All-You-Can-Eat Music Downloads Coming
Posted by Brian Lam at 11:04 AM on March 19, 2008
The Financial Times has a piece claiming that Apple has been in deep talks with music companies about an all you can eat music download service. The piece speaks with authority, citing that while Nokia pays the labels US$80 per handset for such a service, split according to marketshare, Apple has only offered US$20.
The article also cites an anonymous executive who claims consumers would pay US$100 extra for a device with lifetime music downloads, or $8 per month. Comparatively, Zune's pass is US$15 a month. Apple's doing well with current music store sales, in second place in the US behind Wal-mart. So one has to wonder what their motivation would be for such a setup. Total domination? [FT]

Comments (AU Comments · US Comments)
There are currently no AU comments for this post.
Mike918
Posted 2:39 PM 19/3/08
If its $100 for a lifetime and i can listen the songs on my computer i would be completely sold...with or without the DRM :P
Mike918
Rob C
Posted 2:39 PM 19/3/08
The only time I ever use iTunes is when I want to download a song that isn't common enough to be found on any popular P2P networks.
99c is a reasonable price to pay.
Rob C
kibets
Posted 2:39 PM 19/3/08
Best part about my Zune is the Zune Pass subscription. I could care less about owning music. Same with DVD, Blu-Ray. I'd never be fool enough to be paying .99 for a single track on iTunes.
kibets
tamoko
Posted 2:39 PM 19/3/08
@sumocat: It creates an even bigger steamroller to smash the competition. Jobs might be flighty sometimes, but if he puts this into action, it will push physical music sales even further down the toilet. Maybe then the RIAA will figure things out, and pull their upper torsos out of each others asses.
tamoko
sumocat
Posted 2:39 PM 19/3/08
I vote "total domination". Anti-iTunes folks persistently cite the lack of an all-you-can-eat option as the holdout issue for them, which is certainly a valid issue. Take out that roadblock and the other guys get cut off at the feet. They better hope it doesn't happen.
sumocat
MBPro
Posted 2:39 PM 19/3/08
@mferrari: "Or, at least, let me buy a nano and if I decide to upgrade to a classic or touch, let the songs be used on those too. I would be O.K. with brand-specific limits, since I think iPods are the only good MP3 player choice at this time. "
That is possible... right? I think it would be stupid for Apple to not let you upgrade your product and not be able to use the music ...
MBPro
eliteeggnog
Posted 2:39 PM 19/3/08
I would pay $100 for lifetime free music downloads for my iPod/Phone/Tunes...
eliteeggnog
scoobydoo
Posted 2:39 PM 19/3/08
@Spyrojoe: Apparently it does NOT include Online sales:
[www.betanews.com]
scoobydoo
pipper
Posted 2:39 PM 19/3/08
Looks like 99 Ranch market(bay area) Lunch box Isle.
Do I get a price?
pipper
robbywil
Posted 2:39 PM 19/3/08
@Kaiser-Machead:
Good question. So if a company sells hardware packaged with software, and offers free updates to the software, then they have to defer the revenue on the sale triggered by the software. By charging for updates the company can recognize all the revenue up front on the sale. So as soon as anything packaged with the hardware triggers revenue deferral, the company has no reason to charge for software updates any more (except for greed) since they'll have to defer anyways. If the subscription is built into the price, my guess is it would trigger revenue deferral on the hardware and then there would be no purpose in charging for subsequent SW updates. If the subscription is sold separately, then I'd get ready to keep forkin' over your dough.
robbywil
MBPro
Posted 2:39 PM 19/3/08
psh. first time it didnt load and when i retype it it shows up.
MBPro
MBPro
Posted 2:39 PM 19/3/08
mmm Chinese buffets. No doubt the greasy American kind. With some fobby name.
SUPER DUPER BEIJING/SHANGHAI GREAT WALL OF CHINA DRAGONS BREATH BUFFET
MBPro
MBPro
Posted 2:39 PM 19/3/08
mmmmm greasy chinese buffets. no doubt from somewhere that had either "dragon" or "great wall" in the title.
Or maybe "SUPER".
SUPER DUPER BEIJING/SHANGHAI GREAT WALL OF CHINA DRAGONS RULE BUFFET.
MBPro
xgenius
Posted 2:39 PM 19/3/08
But I thought "people want to own their music"
Jobs lies again.
xgenius
Spyrojoe
Posted 2:39 PM 19/3/08
@scoobydoo: No, they're talking online, although I understand how it's hard to believe. I don't know anyone that's bought music from Wal-Mart online.
Spyrojoe
Kaiser-Machead
Posted 2:39 PM 19/3/08
So now I have one more question:
If iTunes gets a subscription, would this mean that all iPods would be able to be accounted for under a subscription model, thus get updates/new applications for free?
Kaiser-Machead
scoobydoo
Posted 2:39 PM 19/3/08
@MagnoliaBoy: I'm fairly sure that Walmart is only nr.1 in retail music sales, not online.
scoobydoo
MagnoliaBoy
Posted 2:39 PM 19/3/08
So, why exactly is Walmart no.1? Is it die hard loyalists, or are the devices themselves pushing their revenue cycle? Better markup maybe?...
MagnoliaBoy
mferrari
Posted 2:39 PM 19/3/08
I'd only pay $100/device if the songs could be stored on a computer (and played on one as well). And I want the songs DRM free, too. This isn't going to happen, but if 1/3 of the device cost is for music, I expect it to be non device-specific.
Or, at least, let me buy a nano and if I decide to upgrade to a classic or touch, let the songs be used on those too. I would be O.K. with brand-specific limits, since I think iPods are the only good MP3 player choice at this time.
I've started to hate my Zune. The software is atrocious.
mferrari
scoobydoo
Posted 2:39 PM 19/3/08
@Kaiser-Machead: Lots of things don't become a success till Apple shows them how to do it.
The MP3 player wouldn't be where it is today without Apple, same goes for USB, WiFi and Firewire.
scoobydoo
speakerwizard
Posted 2:39 PM 19/3/08
these all you can download deals always have lots of restrictions and small print, i hope its not true, apple likes everything to be laid out simple, like their product range or phone tariffs.
speakerwizard
thechansen
Posted 2:39 PM 19/3/08
I was going to say the same thing. Has any music rental plan ever really worked? I'm sure my parents would enjoy it because it makes it easy to fill an mp3 player.
thechansen
Kaiser-Machead
Posted 2:39 PM 19/3/08
Jobs has been known to go back on his claims, but I have serious doubts about this. Are comparable services even really successful right now?
Kaiser-Machead
matt buchanan
Posted 4:32 PM 19/3/08
Insightful, even.
matt buchanan
matt buchanan
Posted 4:32 PM 19/3/08
@robbywil: Wow. A truly insighful comment. Thank you.
matt buchanan
lianna_g
Posted 6:13 PM 19/3/08
From the cited article:
So the devil is in the details, of which there are precisely ... none. Too soon to tell. I'll weigh on and say the lack of a subscription model is what keeps me from going into Apple offerings more than I have. I know it's hard for applets to understand this ... but there really is a business model which allows choice in this area ... subscribe OR own-you can chose. It really isn't that complicated of a proposition to understand. Given the ubiquity of the iPod ... this would seem to be a no-brainer ... some sort of scheme like this would result in an entirely new revenue stream.
lianna_g
Machines
Posted 6:13 PM 19/3/08
I still refuse to rent music.
Machines
jethrobrewin
Posted 11:37 PM 19/3/08
any inclusion of a rental or subscription method would purely be apple adopting a 'me too' mentality to compete with the zune pass, and nokia, rather than a true heart-felt attempt at getting it right.
except of course, the zune pass isn't limited to one model from the range, and never will be.
jethrobrewin
illpacin0
Posted 1:39 AM 20/3/08
DRM-free and an optional 320 bitrate, you could sign me up.
I don't see how artists would benefit though.
illpacin0
sharmanova
Posted 3:53 AM 20/3/08
This makes no sense. With a Vegas Buffet music subscription, why wouldn't you just download, umm, everything?
And once again Vader is in the cafeteria line without a tray. Mr. Steven's shant be pleased.
sharmanova
Xenocide
Posted 3:53 AM 20/3/08
Woooooooooooooo!
.
.
.
.
Nevermind, Meh.
Xenocide
danrod43
Posted 6:16 AM 20/3/08
@kibets:
you're such a fag
danrod43
VNSROCK
Posted 6:16 AM 20/3/08
I won't buy another iPod player until Apple offers some sort of music subscripton. (And over the years, I've bought a ton of iPods). With roughly 4,000 tunes (most ripped from CD's) in my library, I own most of what I want.
What I want now is the ability to listen to music I wouldn't otherwise buy. I enjoy a Rhapsody subscription at home, but haven't found a portable yet that I would buy for the "to go" service.
VNSROCK
keyser
Posted 6:16 AM 20/3/08
if DRM free and in a more universal format, i will drop zune and get an ipod.
they need to read a page from amazon's book.
keyser