Offers $20 USD tax on iPods and iPhones to be divided by record labels based on their market share.
According to a recent report in the Financial Times, Apple has been talking with the Big 4 record labels about offering an unlimited download model to customers of its popular iTunes digital music store.
Citing people familiar with the talks, the paper said the negotiations hinged on a dispute over the price Apple would be willing to pay for access to the labels’ libraries. So far it has offered a tax of about $20 USD on both iPods and iPhones in exchange for unlimited access to the labels’ libraries, a deal which they have thus far apparently refused.
The report also says that Apple is considering a subscription model as well. One industry exec said research showed consumers would pay a premium of up to $100 for unlimited access to music for the lifetime of a device, or a monthly fee of $7-$8 for a subscription model.
Whichever plan proves to be more palatable to record labels one thing’s for sure – the music industry is changing. As much as labels would like to deny it, I believe the future of music will be some sort of subscription-based unlimited consumption model like cable TV for example.