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August 20, 2008 5:47 PM PDT

Apple finally ready for iTunes subscriptions?

Posted by Tom Krazit
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The iTunes Store might soon have a yearly subscription option for $129 a year.

(Credit: Apple)

Three Mac rumors sites have received anonymous tips that Apple is getting ready to introduce a subscription iTunes service in September.

We were already pretty sure that September would bring new iPods, but Apple might have something more ambitious up its sleeve. MacRumors, MacDailyNews, and The Unofficial Apple Weblog are all saying a tipster spilled the beans about a $129-a-year iTunes service that would piggyback on Apple's MobileMe service.

The reports are all eerily similar, suggesting that accurate or not, all the sites heard from the same source. Under the new service, Apple would offer unlimited access to half of its iTunes Store--as of an October launch--for $129 a year, or $179 for an iTunes/MobileMe combo deal, in the U.S. only. If you're already a MobileMe subscriber, you'll only have to fork over $99.99 for the subscription service, perhaps as a mea culpa for this summer's disastrous MobileMe launch.

Rumors of an iTunes subscription service are not new; I found reports dating back to 2005 that Apple was getting ready to introduce such a thing. CEO Steve Jobs has historically pooh-poohed the idea of rental music--and such services haven't exactly taken the world by storm--but Jobs has also said he wasn't crazy about video-playing iPods and Apple-designed mobile phones, either.

This service introduction would also reportedly include an expanded MobileMe service that would let you access "the cloud" (Apple calls it iDisk) from your iPhone or iPod Touch.

While we're on this track, let me be the first to revive--based on absolutely nothing--the Beatles on iTunes rumors for September. It has to happen one of these days.

Tom Krazit, a staff writer for CNET News, focuses on all things Apple. He has covered traditional PC companies such as Dell and Hewlett-Packard, chip companies such as Intel and Advanced Micro Devices, and mobile computers ranging from Research In Motion's to Palm's. E-mail Tom.
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Add a Comment (Log in or register) 30 comments
by close5828 August 20, 2008 6:15 PM PDT
$129/yr? I hope that includes ALL movies and ALL TV Shows....if so, it's a steal.
Reply to this comment
by turoa76 August 20, 2008 6:15 PM PDT
Subscriptions services allow you to experiment with music, but is a horrendously expensive way to build up a music collection that you listen to more than once. To keep that collection you have to pay, and pay, and pay......

If the service allowed you to purchase music (sampled under the subscription service) for a BIG discount then I can see the attraction.

Otherwise it's a money pit with a poison chalice waiting at the end.
Reply to this comment
by DrtyDogg August 21, 2008 6:16 AM PDT
If they offer a discount to subscribers, I'm all for it. I'd actually use iTunes then. Otherwise it sounds to be just about the same as what is already available.
by Perry_Clease August 20, 2008 8:35 PM PDT
Time will tell. We have more pressing matters, who is going to be Obama's VP running mate.
Reply to this comment
by 11bresnanp August 21, 2008 12:30 PM PDT
agreed
by daedbird August 20, 2008 8:55 PM PDT
If Apple offers a subscription service, I am guessing it would be the olive branch he offers to the music industry. Jobs "Ok, you let me keep the 99¢ price point on songs, I let you sell 'special expanded edition' versions of the album for $14, and build you a subscription base Service" Music Industry - "Deal!" What they don't know is Jobs is banking the subscription service will fail, and likely will only work with the newly-released ipods (kind of like the sixth gens only worked with movie rentals). If it does take off, well, that means a ton more ipods sold. Personally, im with Steve, I want to own my music and not lose it after my subscription ends. I really only want to see two things this fall - some deal to get free video content, like the Daily show, downloadable with commercials, and integrated Bluetooth abilities. It is time Apple leads again and Bluetooth ipods I think could lead a new wave of innovation, not just with, finally, the creation of good Bluetooth earphones, but also greater idea of the iPod as a control device, for all the systems around me.
Reply to this comment
by fwdkfwdkfwdk August 20, 2008 10:08 PM PDT
I think you're forgetting something. When you buy music from the apple itunes store, you don't own the music. They can take away the rights to the music you have at. For more information, check out other cnet blogs.
by Shaymojack August 20, 2008 9:46 PM PDT
I hope half the iTunes store means all the music and some videos, not half the music store.
Reply to this comment
by mkuk71 August 21, 2008 12:16 AM PDT
$129/yr, bet that translates to £129 in the UK (almost double price) - usually the way it works :(
Reply to this comment
by nelsondr August 21, 2008 5:25 AM PDT
I think it is all in how you look at it. If you think about a service like MobileMe where you have information stored in the cloud to sync among your different devices it makes sense. Then it just becomes $129/year for remote storage of a music collection you could never store yourself at home. How many people have tons of terabyte of storage at home to hold even a quarter of the iTunes collection?

Also keep in mind that the iPod market is pretty saturated at this point. I have 5th gen iPod that I haven't upgraded yet because it's working fine. Other than expanded storage on an iPod classic, I have no need to purchase a new one. By offering a subscription service it provides a guaranteed constant inflow of cash from Apple customers. A company would be crazy to turn money away from their customers.
Reply to this comment
by Logecy August 21, 2008 7:33 AM PDT
I don't rent music, and find the whole subscription idea bordering on bizarre. I mean, especially with the costs for storage devices going way down, I fail to understand why you have to 'try' out a particular song, album or whatever to see if you like it or not; as if a few MB's of storage space is really going to make any difference (because if it does, whether or not you should buy this or that album should not be the question you're mulling over).

I have at least 150 GB of music?much of it transferred from CD's I have purchased, though a lot of it is from iTunes (as well as eMusic)?and guess what! There's stuff I have that I don't listen to at all, have forgotten I have, and even don't particularly care for.

Yet I am glad that I have them because my tastes grow and evolve over time, and some music that I don't like now I may have a change of heart about later.

Or maybe not. Though at least the music is mine. If I don't buy another iTunes song or television show again I at least know that I have, I have.
Reply to this comment
by Lawrence Leichtman August 21, 2008 7:37 AM PDT
This is ridiculously expensive for half the content of I-tunes and probably no movie or TV content. You have to download 130 songs just to break even. What a rip-off.
Reply to this comment
by Charleston Charge August 21, 2008 8:11 AM PDT
"I bought some of the American Idol tunes"

Thank you for continuing to support the horrible music that continues to come out. :-)
Reply to this comment
by scatlizard August 21, 2008 8:40 AM PDT
It would be better if the subscription was $50 a year. More customers would buy it and then re-buy it the following year. I will not buy it at $100.
Reply to this comment
by trd1282 August 21, 2008 9:20 AM PDT
I am one who would buy a subscription at that price as long as the music (movies and Tv shows for that matter) is mine to keep. Heck, I would even sign a two year contract if it meant they could deliver.

As far as the mobile me service, I have been waiting for a reason to move my e-mail back to apple. If that package deal comes to be (mobile me+iTunes), then I am finally sold...
Reply to this comment
by Zanny_Blowzsteve August 21, 2008 9:51 AM PDT
Wonderful, Those iTards can't even make MOBILE MEss work now! And they want to tax a patchwork system further by adding this? Stevie... Make the crappy, expensive toys you have now, work first. When you can do that without having to offer 3 months of free "mea culpa" make-good service, then, and ONLY then, take on something else. Fix the iCrap you already offer FIRST!
Reply to this comment
by TV James August 21, 2008 10:20 AM PDT
Yeah, I'm sure it won't play on my 5G video ipod, either.

Forget rental music and just release the Beatles already. That would be a lot more interesting. Rental music is just a technological will they-won't they. Big deal. Digital Beatles would be a far more interesting story.
Reply to this comment
by Hanniba_al August 21, 2008 11:38 AM PDT
@ nelsondr, This is why I'm sure Apple will make some BIG BIG cuts on the iPod Touch. It may seem like it will hurt other iPod sales, but I'm sure they would prefer the money stream it opens from more App Store Downloads and *gasp* firmware upgrades.
Reply to this comment
by Fernyyy August 21, 2008 12:18 PM PDT
Access to "half" the iTunes store? The $10.75/month is ok, but access limitations aren't too good. I'll stick with Rhapsody.
Reply to this comment
by whatnow992 August 21, 2008 1:35 PM PDT
yea, $129 is VERY Expensive. I dont like renting music, I like buying it. "Buying" the song is what made iTunes attractive in the first place way back when.
Reply to this comment
by DrtyDogg August 21, 2008 6:48 PM PDT
What made iTunes "attractive" back when was marketing and the iPod. Buying songs was available from many stores prior to iTunes.
by Ray180 August 21, 2008 2:22 PM PDT
$129 for a year of isn't expensive! I'm paying $15 a month for Rhapsody (or $180 a year) and think it's a great deal. My wife and I can both use it (up to 3 devices) so it's really only $7.50 a person, which is A LOT cheaper than each of us buying just one cd a month. And we can choose from over 4 milllion songs!
Reply to this comment
by cag4 August 21, 2008 2:31 PM PDT
clearly none of you have tried any ot the subscription music services... and you should -- they are fundamentally different than owning music and highly complementary.

The reason to pay the $10/month for a subscription is so that you have access to *all* the music you could possibly want, in every genre, every artist, anytime, anywhere -- suddenly decide you want to have some late 1950's jazz? Got it. Play a game of "name that band" at a part? Got it. Parents visiting and they're not into you death metal collection? Billy Joel is only a click away. Have a spouse or kids that aren't perfectly aligned with your taste in music? Everything they like is available for $10 month and you don't have to buy it and store it.

Likewise, someone says, "Have you heard....?" and you can check it out instantly... and if you like it, then you buy it. you don't have to rely on lame radio or other canned music sources for music exploration/discovery.

Try it and you'll see that the model is not a replacement for owning music... I've got over 250gigs of high quality mp3s and 100s of cds lying around of the stuff I really care about... not to mention 300+ cassettes (thank goodness I own those ;-) in addition to the rhapsody subscription, the Pandora subscription, etc... just different models for consuming music that work really well together.
Reply to this comment
by alansky1--2008 August 21, 2008 3:02 PM PDT
So a combo subscription for new subscribers would be $179 a year?$80 more than a MobileMe subscription, that is?but current MobileMe subscribers would pay $99 extra for the same service? In other words, new customers pay $179 but current customers pay $198. Some bargain!
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About Apple

At the start of the 21st century, there's no tech outfit more influential than Apple. CNET News' Tom Krazit and other reporters will attempt to make sense of the rumors, hype, products, and people that will shape the future of the company. But Apple's not the only game in town, as the established cell phone companies and others strike back against the iPhone. E-mail Tom at Tom.Krazit@cnet.com.

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