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April 12, 2007 11:11 AM PDT

Subscription rumors for iTunes surface again

by Tom Krazit

According to one music industry executive, Apple is considering launching a subscription version of the iTunes Music Store this year.

Will Apple soon roll out a subscription version of iTunes?

(Credit: Apple)

CNN's Media Biz blog quoted Les Ottolenghi, the head of Intent Mediaworks, as saying he's talked to Apple people about a subscription service. "I think Apple is seriously considering a subscription offering right now even though they will probably tell you otherwise," he said in the report.

Subscription music services such as Rhapsody, after a rough start, have found a footing but haven't caught on with music buyers in the same way as Apple's iTunes. That could change if Apple embraces the model, which it has eschewed for years.

Many pundits believe that while lots of people do like to buy and own their digital music, there's enough of a market out there for renters to justify well-designed subscription services. Blockbuster and Netflix do pretty well on the video side, after all.

This rumor has been making the rounds for years, as noted by CNET in 2005 as well as last year. Is Apple finally ready for a subscription service? It's not clear to me how subscription iTunes would work with DRM-free music, but note that Intent Mediaworks has built its business around DRM technology.

An Apple representative did not immediately return a call seeking comment.

Tom Krazit writes about the ever-expanding world of Internet search, including Google, Yahoo, online advertising, and portals, as well as the evolution of mobile computing. He has written about traditional PC companies, chip manufacturers, and mobile computers, spending the last three years covering Apple. E-mail Tom.
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Why Call it Rental?
by nelsondr April 13, 2007 2:58 AM PDT
Why does everyone insist on calling a music subscription service with Yahoo or Urge as music rental? I guess I look at it a little differently. I've been a member of Yahoo and Urge until my Gigabeat died, then I finally somewhat reluctantly made the move to an iPod. While using their subscription services it allowed me to download an unlimited amount of music to see if I really was interested in it. It was nothing more than a radio replacement for me.

Some people don't have a problem paying a monthly fee for satellite radio, and they don't get to keep the music they listened to from there. Also they have to wait until a station plays a song again if they want to hear it to see if they liked it or not.

For me it really boils down to this. How many items do I want to carry with me a day. Sure I could get a portable satellite radio receiver to carry around with me. Then I would still have my iPod, and my cell phone. I don't need another item so I can be introduced to new music.

A subscription model would be great for iTunes. I've actually turned around and bought a lot of the music that I subscribed to while I still had the subscription. I found that I wanted to have some more freedom with the music and it was worth the extra money to obtain it DRM free (yes that means I usually bought the physical CD). With the possibility of DRM falling by the wayside in music downloads, a subscription service is a prefect reason to have DRM. Don't get me wrong... I'm all for the end of DRM on tracks that I purchase, but it would have a use with a subscription service.

Enough of my rambling... I guess it is all in how you decide to look at a subscription service. Are you renting the music? Or, are you using it to replace other alternatives like commercial free satellite radio?
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