Apple Considering ‘Free’ Access to iTunes Library

March 20th, 2008

Apple is talking with the major record labels about a change in the iTunes Store business model that would give customers free access to the store’s complete music library, according to the Financial Times. The catch is that consumers would pay a premium for Apple’s iPod and iPhone devices.The rumored model is akin to the “Comes with Music” deal Nokia inked with Universal Music last December. Apple could not immediately be reached for comment, but the British newspaper reported the negotiations hinged on a dispute over the price Apple would pay for access to the labels’ libraries.

“Rumors of Apple getting into the ‘all you can eat’ music business have been around almost as long as the iPod itself,” said Michael Gartenberg, an analyst at JupiterResearch. “The real challenge that Apple would face is taking this from something that appeals to music aficionados to something the mainstream could appreciate.”

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