Apple Inc (AAPL)

[fmikehugo]

07:58 AAPL Music labels ask Apple to adopt subscription - FT (92.19 )

Fnancial Times reports the world's biggest music cos are expected to ask Apple to introduce a music subscription service to its iTunes digital media store as part of negotiations to renew their agreements with the computer co. Those discussions will begin in earnest next week when Universal Music sits down at the bargaining table with Apple.

Universal's competitors, Sony-BMG (SNE), Warner Music (WMG) and EMI, have either commenced talks with Apple already or are poised to do so, according to people close to the matter. Execs at Universal and other labels believe a subscription service could prove more lucrative for them than iTunes' prevailing model of charging consumers 99 cents per track because it would increase consumption of music. It would also entitle the labels to a share of monthly payments, in addition to small licensing fees each time their songs are played. Record cos may also renew their request for variable pricing on iTunes as they try to ramp up their digital profits.