In a move that could see perception of the iTunes Store shift beyond all recognition, various reports are suggesting that Apple Inc. is contemplating increasing the price of its iPod and iPhone devices in order to grant unlimited free usage of its accompanying music and media download portal.
Is Apple considering the opening of iTunes to unlimited access? Credit: Apple.
The proposed plan, which first emerged through an article published by the Financial Times (FT), has met with a degree of score from industry analysts who suggest that any such transformation applied by Apple could lead to an “accounting nightmare,” while also likely to drive a wedge between Apple and recording artists left unhappy at their content being given away for free.
According to the FT report, unnamed sources close to Apple have said the California-based tech specialist is currently holding talks with major music distributors regarding the possible incorporation of a monthly subscription on the iPhone and unlimited usage packages for iPod media players.
The report does not specify the projected price jumps Apple’s devices would incur should unlimited user access be introduced to iTunes, but it does claim that any emergent deal is being held back regarding the amount Apple would pay music labels for access to their content.
Apparently discussions are presently stuck in the mud on this aspect of the deal, with Apple only prepared to offer contributing labels around $20 USD for every iPhone or iPod bought by consumers, reports the Associated Press.
It’s likely that Apple is considering alternative ways of presenting its wealth of iTunes content to iPod and iPhone users on the back of rival music download portals seeking fresh distribution methods.
The immense popularity of the iPod/iPhone and the iTunes Store has recently helped power Apple into second place in the U.S. list of leading music sellers, behind only American retail giant Wal-Mart. The iTunes Store made around $2.5 billion USD for Apple in 2007, while it made $8.3 billion from its iPod range during the same period.
Other recent rival portal deals have seen mobile phone titan Nokia joining with Universal Music to provide users of selected Nokia handsets with unlimited free access to Universal’s music portfolio. Also, RealNetworks and Microsoft Corp both offer monthly subscription-based access to their respective music catalogues.
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