Will iTunes Become a Subscription Service?
Say it ain’t so! Well, maybe… we’ll see!
“Major record companies are expected to ask Apple iTunes to change their 99c-per-song download model to a subscription-based service, according to industry insiders. At talks to be held next week, Apple will be negotiating with music label Universal and has reportedly already began talks with Sony-BMG, Warner Music and EMI to renew contracts for iTunes content. Amid industry fears that music sales are steadily falling, media labels are said to be looking to negotiate a more lucrative business model with iTunes, where labels would take a share of monthly subscription payments. Although rumors of a subscription service have been circulating for the past few years, insiders say it is far more likely now in light of Appleâ€™s DRM (digital rights management)-free deal with EMI.”