Apple eyeing iTunes subscription service?
Despite Apple consistently denying it has any interest in offering a subscription-based music service, CNNMoney.com is reporting that Apple’s stance may soon change. According to Les Ottolenghi, CEO of Intent Media Works, a digital distribution system that works with P2P networks, he has had meetings with Apple and believes the company is on the verge of announcing a subscription service for iTunes. “I think Apple is seriously considering a subscription offering right now even though they will probably tell you otherwise,” he said.
This move would go against market precedents, which show that rival subscription services such as Napster, Rhapsody, and Yahoo! Music Unlimited have struggled against the iTunes model. Some feel, however, that subscription services have failed to catch on with consumers due to the lack of an iTunes-based option. “The number one factor retarding the acceptance of the subscription model is the dominance of Apple. The idea of subscribing to music is new to most consumers so when the dominant player doesn’t talk about it, the idea seems out of the mainstream for most consumers,” said Phil Leigh, a senior analyst with Inside Digital Media.
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