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Apple is changing its tune on music subs

  • Last Updated: 1:08 AM, October 8, 2010
  • Posted: 11:49 PM, October 7, 2010

Apple is talking with the major record labels about a subscription music service that would give customers unlimited access to songs for a monthly fee, sources told The Post.

Apple iTunes boss Eddy Cue was on the phone with music honchos as recently as a few weeks ago trying to figure out how the partners can move forward.

One source said the service could have tiered pricing ranging from $10 to $15, although there are issues to be ironed out, including how much music would be included in each tier and how long consumers would be able to access that content.

One top music exec said the labels are supportive of the idea and believe it could re-energize digital music sales. While album downloads have been on the rise, single track sales were flat in the first half of 2010 compared to the previous year.

Speculation that Apple would introduce a subscription service has been kicking around for years but the news that music service Spotify will be part of Microsoft's Windows Phone 7 release on Oct. 11 revived industry chatter.

Spotify is a European music service that has yet to launch in the US. The company's stumbling block has been its free ad-supported streaming music business model as the record labels prefer a paid subscription model.

"I think there could be some demand for [an Apple subscription service], but it wouldn't be universal," said Gartner music analyst Mike McGuire.

A spokesman for Apple declined comment.

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