Apple Seeks "Free Access to iTunes"

Apple is in discussions with leading music companies about giving customers free access to its entire iTunes music library in exchange for premium pricing of its iPod and iPhone devices, reports Andrew Edgecliffe-Johnson of the Financial Times.

The “all you can eat” model, a replica of Nokia’s “comes with music” deal with Universal Music last December. Nokia reportedly will offer $80 or so to music industry partners, in exchange for the use of music assets.

Apple is said to have offered $20 per device, and also is said to be examining a subscription plan for iPhone users, as that device obviously comes with a billing arrangement.

The subscription model might allow users to keep up to 40 or 50 tracks a year, even if they later cancelled a subscription or changed devices.

As the old adage goes: "With all this ---- lying around, there has to be a horse here somewhere." In other words, there are new business models to be discovered that provide direct benefits to content owners, device manufacturers and access providers.

Over the long term, the only way viable business models will be constructed that support the building of fiber-to-home and mobile broadband networks, is when all the key value chain members also participate in the revenue chain. An uneasy relationship it will remain. But the relationships and models have to be created.

Otherwise, we won't get ubiquitous and capacious broadband upon which services and applications can be run.