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Apple considering premium for unlimited iPhone, iPod music - Page 2

post #41 of 43
O.K., I think I got the concept. With the Nokia plan, "Comes With Music", you get unlimited downloads from their library that you can play either on your compatible cell phone or one registered computer. As long as you pay the subscription charge, you can listen to your music on your cell phone or your one registered computer. Once you quit, you can no longer listen to your downloaded library on your cell phone. But you can keep and listen to your downloads on your registered computer. However the music can not be transfered anywhere else unless you re-subscribe. Nor can they be burned to disk.

Now the Apple plan is a little different in that at the end of the subscription contract, whether you quit or not, you can keep up to 40 to 50 songs as though you bought them from the iTunes Store. These songs are yours and can be moved to other iPods, other MP3 devices or burned to disk. This plan will make sense to anyone that usually purchase 40 to 50 songs in a year. With this plan you can listen to the entire iTunes Store library for a year and still end up with the 40 songs you would have paid .99 cents for anyways. So if Apple charges $40.00 a year for the service, these subscribers will break even because he gets to keep 40 songs DRM free for every year he subscribes. Even if some one usually only purchases 20 songs a year, he'll be paying only an extra $20.00 (assuming a $40,00/years charge) to listen to the iTune Store entire library. And he'll still get the 40 songs to keep at the end. Apple plan is to not make a ton of money with the subscription but to entice music consumers to buy an iPhone or iTouch for this service. And once enough iTouch is in the hands of the consumers, it will have a "halo" effect on iTV with it's movie rental/buying plan. The Music labels will get most of the money from the subscription charge. It may work if Steve can "lowball" the music label. $20.00 sounds to cheap but $30 to $35 a year, with 30 free songs at the end, may just be the sweet spot.
post #42 of 43
This has been debunked now.

http://www.businessweek.com/technolo...gn_id=rss_tech
post #43 of 43
Quote:
Originally Posted by anantksundaram View Post

Serious question: Does anyone (other than truckers) listen to XM anymore? Isn't it a dying -- if not already dead -- industry?

I listen to the MLB channel and games on XM all the time in the car
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