Wednesday, March 19, 2008

Apple May Offer Free Music Access

Apple Inc. is negotiating with record labels over a deal to give iPhone and iPod customers free access to the entire iTunes music library if they pay extra for the devices.
Having witnessed Nokia pay the labels to offer "Comes with Music" cellphones that let consumers in Europe download unlimited music from a limited catalog, Apple is apparently considering a similar approach.
Apple is trying to lowball the labels for this device, proposing that it pay the labels $20 per device for the right to give the consumer unlimited music -- considerably less than the premium extracted from Nokia (a rumored $80 per unit).