iTunes Subscriptions? Turn Up the Volume

An anonymous tipster seems to have contacted several Mac rumor publications with rumors about an unlimited music subscription within iTunes.

According to the email, Apple will charge US-based customers $130 per year (or $100 for MobileMe subscribers) for an "iTunes Unlimited" subscription starting in late October that will include the ability to download about half of the songs in the iTunes store in a 256 Kbps format -- presumably AAC files that are protected by an updated, subscription-capable version of Apple's Fairplay DRM. The rumored subscription would only include half of the songs in the store because offering music under a subscription plan requires a new deal with copyright holders.

Subscription songs would be playable within iTunes as well as on certain supported devices -- most likely the iPhone, iPod touch and other upcoming iPod models. However, older iPods would most likely be incapable of playing the files, because they almost certainly lack necessary technology to verify the validity of a subscription.

Steve Jobs has mocked music subscriptions in the past, maintaining that while the rental model makes sense for movies, consumers want to own and collect music. However, he admits that the average iPod user has purchased only 22 songs from the iTunes music store. The ability of connected players such as the iPhone and iPod Touch to download new songs over-the-air may have convinced the Apple CEO that subscriptions could be the best way to get people to consume -- and pay for -- more music.

Subscriptions will only be available on a yearly basis, according to the tipster, while the current individual song pricing system would remain as is. When users sign into their accounts, they would see a "Get" button instead of a "Buy" button, for songs that are available as part of the subscription.

Here's the portion of the tipster's email that pertains to iTunes:

• 256 Kbps music; highest quality digital music subscription service ever
• 50% of U.S. store available for iTunes Unlimited at launch, U.S.-only launch
• Available through iTunes or retail box a la MobileMe, funds applied through iTunes gift cards cannot be used towards subscription purchase
• $129.99 stand-alone or $179.99 with MobileMe, current MobileMe subscribers can add iTunes Unlimited for $99.99
• One-year subscription period
• Current a la carte options unchanged
• When signed in to subscription account, "Buy" is "Get"
• "Download and Play throughout iTunes Unlimited Subscription" or "Buy and Keep"
• "Buy and Keep" option available for downloaded subscription songs, purchased version replaces subscription version
• Late October launch with iTunes 7.8

We've contacted an Apple spokesman for the company's standard "no comment" response, and will post that when it comes through.

by Eliot Van Buskirk for Wired.com

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