15
Mar
05

Apple to consider subscription service

Recall the banter with RObert, Blaine, and myself….well this is back in the news again.

Given Apple’s strong relationship with the labels, insiders say Apple’s goal would be to offer 100% of its music catalog through its subscription service. Competitive services are currently able to offer up to two-thirds of their catalogs in their subscription plans because of licensing restrictions. According to sources, Apple would likely be negotiating terms where the labels would receive approximately 5 cents for each song downloaded and transferred to a music device, per month. By comparison, insiders say Apple surrenders approximately 64 cents to the labels on each of the songs it sells for 99 cents. Apple has said that iTunes has been operating at close-to break even, but has showed a slight profit in recent quarters.

Another great find by Rafat Ali

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