Tuesday, March 25, 2008

iTunes iPod Music and Movies Gold Rush


Unlimited iPod tunes an online gold rush

Apple negotiations with music biz could herald new digital landmark

The iPod could once again radically change music-listening habits, and offer a financial boon to an ailing music industry.

The most popular digital media player on the market might soon be available at a price that would include free access to Apple's online music library, iTunes.

If negotiations of the so-called "Total Music" plan between Apple, Inc. and four major music labels -- first reported this week by the Financial Times -- come to fruition, Apple would essentially offer free, unlimited iTunes downloads to consumers who pay a premium for an iPod device.

Apple is also looking at a subscription service for iPhone users, which would allow unlimited iTunes access in exchange for a monthly fee.

The Total Music concept is based on Nokia's Comes With Music plan, which allows free downloads from Universal Music Group on some of its cellphones, resembling a subscription service.

Other networks including Vodafone and Rhapsody are also trying to stake their claim in the online music gold rush with similar business models.

But none have the market penetration of the iPod, which is becoming almost as common in households as the television.

Apple CEO Steve Jobs has long argued that consumers want to download and own their music, not rent it, but it appears he's changed his tune.

With diverse listening options available online, it seems some consumers are becoming hungrier for a wider range of easily accessible music rather than owning a personal collection.

Record companies and musicians have long struggled over the open boundaries the Internet presents to consumers, trying to find innovative ways to track and monetize the consumption of their music online, while sites such as BitTorrent and LimeWire allow quality downloads for free.

Now, with the possibility of selling the highly consumed iPod in conjunction with a vast collection of online music, things might be looking up for record labels, who would allegedly receive a cut from the iPod sales if a deal is realized.

"Most people feel they already have unlimited access to music through filesharing networks . . . The move to unlimited music in a device recognizes finding innovative ways to monetize it. This creates a lot of value in the iPod -- the value of the device is even greater," says Michael Geist, a professor specializing in Internet and e-commerce at the University of Ottawa.

And although iPod commands about 85 per cent of the digital music playing market, sales have reportedly flattened in recent months, so the deal could give iPod a much-needed image boost.

Apple has refused public comment on the negotiations.

But under any potential deal, many questions would need answering: How long would customers would be allowed to keep the music they download?

Would record companies be willing to allow users to have permanent ownership of unlimited downloads, or would subscribers of a Total Music plan have their music taken away from them after their devices burn out or subscriptions expire?

Other unknowns include: Would existing iPods have access to a Total Music plan? Would new technology need to be introduced?

Until we hear more you can still get unlimited ipod, iphone and ipod touch music, moives and game downloads at iPodTunesDownloads and iPodMediaDownload

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