| 25th March - Californian gadget
shop Apple has taken a leaf out of Nokia's book and is believed to be in discussions
with the major record labels over an all you can eat music model. iPhone
and iPod customers would be given free rein on the entire iTunes music library
in exchange for a price hike on the devices themselves. The offering sounds
a lot like Nokia's 'Comes With Music' platform, announced in December, under which
consumers buy a Nokia device with a year of unlimited access to millions of tracks.
Once the year is complete, customers can keep all the music they downloaded. This
move flies in the face of previous business models used by both Nokia's own UK-based
Music Store and that of rivals such as Omnifone's MusicStation platform - which
stop users listening to music once their subscription has been terminated. And
Nokia has already had some success with the major labels - Universal Music Group
International is already on board and Nokia said it is in discussion with the
remaining major international labels. However, there is still no word on
what the actual pricing model may be and it's not clear whether Apple's potential
platform would follow suit with a year's access. However, the music-subscription-tied-to-a-device
model does have the potential to give the digital music industry a boost, along
with the devices market. Back
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