Contentinople - Nicole Ferraro - News Bits: Apple Proposes Free iTunes... for a Fee

Written by Nicole Ferraro

Wednesday, March 19. 2008 at 11:00 AM EDT 1 comment

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How much would you pay to access unlimited iTunes? That seems to be the expensive question on the street today, with the news that Apple Inc. (Nasdaq: AAPL) is currently mulling a plan to offer free iTunes downloads to Apple iPod and iPhone users willing to pay a premium for their devices.

As per the Financial Times, Apple is considering two plans. The first would ask that users pay a set premium for the hardware, which could possibly raise the price of the device an extra $100. The second would involve a subscription fee, and would only be available to iPhone users who already receive a monthly bill. That fee is rumored to be at $7 or $8 per month.

But here's where it gets a bit furry: According to FT, "One executive said the research had shown that consumers would pay a premium of up to $100 for unlimited access to music for the lifetime of the device," whereas subscribers could "keep up to 40 or 50 tracks a year, which they would retain even if they changed their device or their subscription lapses." So, in other words, if you go the premium route, that 100 smackeroos will only take you so far until your broken-down iPod falls apart and you find yourself another $400 (estimating) in the hole for "free" downloads.

Nevertheless, it is a radical step forward from the stringent 99-cents-or-bust approach for every single song download. It comes down to whether you believe in ditching set-menu pricing in favor of an all-you-can-eat music buffet.

Here are some other digital bits I found floating around the Web:

Facebook is getting ready to launch an IM service this week, which would allow Facebookers to chat in IM in real time (because we haven't enough workday distractions). It makes you wonder, aren't social networking IM clients pointless?

Additionally, Facebook is updating its privacy functions, adding a feature called "Friends of Friends," allowing users to share information with their friends' friends who aren't exactly worthy of friendship. Facebook is allowing users to restrict information from being shared with certain friends' lists. This is a small step for the privacy destroyer, Facebook, but an important one, as a poll on Internet Evolution last week determined that users distrust social networking sites more than their other Web services.

Adobe Systems Inc. (Nasdaq: ADBE) is working to enable the Apple iPhone with a Flash media player. Steve Jobs originally rejected the idea (don't want!), but Adobe claims it has since obtained Apple's latest software developer tools and will be able to release the Flash player through iTunes.

Tags: Adobe, Apple, Facebook, Flash, iPhone, iPod, iTunes, Mobile, MP3, Music, Social Networks

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rhapsodic itunes
Pete Baldwin
Rank: Sultan
Wednesday March 19, 2008 1:32:47 PM

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great news if they get it done. if you are paying an extra 100$ for the device but you retain 40-50 tracks a year, that pays for itself in a couple years. the subscription fee, if true, is around half the price of rhapsody's "to-go" subscription. memo to steve jobs - lets get this done!

as a consumer i'd still wait a couple months after rollout though - the potential for drm-like issues (would they invent a new license rights protocol?) warrants caution.

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