Apple to offer "all you can eat" iTunes with premium iPods

 

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Posted on 19 Mar 2008 at 08:32

Apple is set to offer customers unlimited access to its iTunes store in return for paying an extra premium on iPod devices.

Apple executives claim customers would be willing to pay $100 (around £50) extra for their iPod or iPhone if it gave them "all you can eat" access to the iTunes library for the "lifetime of the device", according to a report in the Financial Times.

Apple is believed to be considering a second monthly subscription model for iPhone owners, who could have a $8 (£4) fee added to their monthly phone bill. Subscription customers would be allowed to keep "40 or 50" tracks per year, even after their subscription has lapsed.

The company is currently in negotiations with leading record labels, although Apple is reportedly only prepared to offer them $20 per device, whilst rival Nokia is believed to give the labels $80 per device with its similar "Comes with Music" deal.

The "all you can eat" offer could help breathe fresh impetus into iPod sales, which have been sloping off in recent times, according to market watchers.

Piper Jaffray analyst, Gene Munster, recently claimed the last quarter of iPod sales showed the lowest growth rate in the history of the device, mirroring an industry-wide slowdown in MP3 player sales.

Would you pay extra for an iPod to get unlimited access to the iTunes store? Let us know on comments below.

Author: Barry Collins