News
iPhone to 'come with music'?
Tim Green Mar 19 2008, 11:45am
Apple is rumoured to be considering a version of Nokia’s ‘come with music’ business model for its iPod and iPhone devices.
It’s said to be in discussions with the major labels about giving customers ‘free’ access to iTunes in exchange for paying a premium on hardware. It’s an idea that has been pioneered by Universal – which called the concept ‘Total Music’ – and will be launched by Nokia on selected handsets later this year.
The idea is that consumers pay a premium in return for all-you-can-eat music for a limited period.
The revenue is shared between device maker and label. Nokia is understood to be offering almost $80 per handset to music industry partners, to be divided according to market share. Insiders says Apple has so far offered only about $20 per device.
But Apple should be keen to do something, as it makes more money from hardware than iTunes.
