Reports floated around the net yesterday that Apple may be in discussion about a subscription based music service for the iPhone. Today Business Week has released a story and said, “Not so fast”.
While they believe the time may be right for an all you can eat service, they report that no official talks are under way at this time.
The fact is that iTunes in it’s current state helps sell hardware for Apple. But iPod sales are slowing and competition is increasing from the likes of Amazon and other music vendors that already offer a subscription based service.
In order to keep sales of the iPod up and get new people interested in the device Apple may be forced to look in to a subscription based model. If that happens they are more competition to the likes of satellite radio which will have an even harder time trying to define itself in the market place.
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