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iPods With Unlimited Music: Is Steve Jobs Coming Around to Subscriptions?

March 19, 2008 12:52 PM ET

The Financial Times reported today that Apple is in discussions with the major labels to sell iPods and iPhones that come with unlimited access to iTunes music. Consumers would pay a one-time surcharge when they buy the device, and would be able to download as music as they want for the life of the iPod or iPhone. It's similar to a deal that Nokia worked out with Universal Music Group last year, to sell its phones with unlimited access to Universal tunes for an $80 premium. According to FT's sources, the Apple deal is being held up by negotiations over how much to charge for the access: Apple wants to keep the charge as low as $20, while the labels presumably want something closer to the Nokia deal.

The deal sounds a lot like the subscription model already available from Rhapsody, Napster and others, which Apple CEO Steve Jobs has long said does not work: "The subscription model has failed so far," he was quoted as saying last May. "Never say never, but customers don't seem to be interested in it." If Apple was able to offer unlimited access to iTunes music for a $20 extra charge, it's hard to imagine many consumers not being interested in it.

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Song Stories

“Vans”

The Pack | 2006

Berkeley, California rappers the Pack made their footwear choice clear in 2006 with the song "Vans." The track caught the attention of Too $hort, who signed them to his imprint. MTV refused to play the video for the song, though, claiming it was essentially a commercial for the product. Rapper Lil' B disagreed. "I didn’t know nobody [at] Vans," he said. "I was just a rapper who wore Vans." Even without MTV's support, Lil' B recognized the impact of the track. "God blessed me with such a revolutionary song… People around my age know who really started a lot of the dressing people are into now."

More Song Stories entries »
 
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