Renegotiation Dance: Labels To Ask Apple On Starting Subscription Service

3 Comments

The music labels are about to get into the Apple iTunes renegotiation dance, again, and this FT story suggests that they will be asking the company to start music subscription services, something the company has avoided since the start. Universal Music, the largest record company, sits down at the bargaining table with Apple next week. Sony-BMG, Warner Music and EMI, have either commenced talks or are going to soon, the story says citing sources.
The labels think subscription is more lucrative and stable: It would also entitle the labels to a share of monthly payments, in addition to small licensing fees each time their songs are played. Also, another thing Steve Jobs hates, or at least used to until last year: Record companies may also renew their request for variable pricing on iTunes as they try to ramp up their digital profits.

Meanwhile, in a related story, CNNMoney.com’s media blog quotes Les Ottolenghi, CEO of Intent MediaWorks, a P2P digital media service, saying he’s had meetings with people from Apple and he believes the company will announce a subscription service for iTunes within the next six months. Of course this is the Nth time this rumor and speculation has come around.

3 Comments

Kimberly

I'm hoping these subscriptions come to the iTunes store. I am a big fan of the shift to DRM-free, but would be willing to have DRM-ed files for subscription.

I think the music industry may put a lot of pressure on Apple for this. They are clearly having some trouble. And, DRM-free may not be enough to lift their business. (If you read Shelly Palmer's blog, <a href="http://advancedmediacommittee.typepad.com/emmyadvancedmedia/2007/04/drmfree_itunes_.html">he's been saying it will definitely not work</a>. )

Maybe they can lean on Jobs enough, and I can get my subscription. And the music industry can get a little kick in the pants.

– Kim

dark warrior

its only a matter of time.
Apple TV will not have a significant impact till this hits the market.
for all the obvious reasons….

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