Apple Considers Subscription Music: Changing the Model without Changing It

Apple (AAPL) is reportedly considering a music rental service, a la Rhapsody or Napster. I happen to be a Rhapsody subscriber (though I use it less and less), but realistically, because it's incompatible with the iPod, its odds of major success are pretty limited. An iTunes-based rental service, compatible with the iPod, just might take subscription to the next level.

The music industry would probably love it if Apple could get its denizens of iPodheads paying $15/month for all-you-can-eat music, but mainly because that would wean users of the track-based model. And where there are tracks, there's free and easy downloading.

The industry has definitely been talking this up -- I've listened to a few industry panels lately where folks were pounding the table on it. But it's all pretty transparent: subscription music is a way to change the model without changing the model. Car companies might be indifferent if you want to buy a car or lease car: what they don't want you to do is ride a bicycle to work. The big fear in the music industry is that everyone start riding bikes... so to prevent that, they'll find different ways to sell the same product for the same price -- just with different kinds of terms. Unfortunately, I think the genie is out of the box on this one and any attempt to lure it back in will probably sink.

Comments

[Jon T]

Forget a monthly subscription, which has clearly proved a failure over and over. No-one wants that for obvious reasons, even if the greedy music companies would love it.

The model that may have some chance is the $20 premium - optional - for an iPod to have access to unlimited music on that device.

Though we all know DRM is cracked, and the MAJOR threat the music co's face would be all these devices having complete access, and a crack to to remove the DRM forever. Bang goes their business.

At least Apple iTunes model of cheap and cheerful prices keeps people buying - 4 billion songs sold cannot be dismissed.