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iTunes headed toward variable pricing, subscriptions?
We've all been hearing the iTunes subscription rumors as of late, which isn't so unusual, as these things do seem to pop up from time to time. You'll probably recall that last year, the big four labels pressed Apple for a subscription service and a variable pricing model--both of which were shot down by his Steveness. Well, it looks like Apple's contracts with those labels are up for renewal again and the labels are quite likely to make some very familiar demands. MarketWatch is reporting that Universal will demand a variable pricing model as well as a subscription service, to help offset some of the company's losses from sagging CD sales. Apple has quietly introduced variable pricing into the iTunes store with EMI's DRM-free tracks, so common logic seems to suggest that the company might be more open to such a model now--if the labels are willing to make certain concessions. More DRM-free tracks would be sweet music to my ears, though a higher price for those tracks would offset the excitement a bit. And what of a subscription service? While nothing is impossible, Apple has long distinguished itself from other online retailers by refusing to sell subscriptions--only single tracks and albums. Apple has never been a big fan of music rentals, so don't expect an iTunes subscription service any time soon.
For more on the rumor:
- see this MarketWatch report
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