Reports: Apple in Talks with Labels on Unlimited Music Services

Cupertino, Calif. -- Cupertino-based Apple is in talks with the major record labels on possible new models that would see music come pre-loaded or be available through unlimited subscription plans on its iPod and iPhone devices, the Financial Times reported. While Nokia, which signed a deal with Universal Music for an unlimited "Comes With Music" service, will reportedly pay nearly $80 per handset to music companies, Apple is offering only about $20 per device, two executives familiar with the negotiations told FT.com. According to CNET News.com, Apple began talks with Universal Music six months ago on offering devices with pre-loaded music, and has since opened similar discussions with the other major labels. Under the proposal, Apple devices would come with a certain amount of pre-loaded music that, after six months or a year, would shift to a subscription model, a source told News.com. FT.com reports that subscription models under discussion would let consumers keep 40 or 50 tracks per year, which would be retained even if they change devices or their subscription lapses.
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