Apple is considering bundling unlimited access to the iTunes library with its next generation of iPods and iPhones, reports the Financial Times. In a similar move launched in December, Nokia will pay music industry partners almost $80 per handset for “comes with music” phones. Apple has offered just $20 to labels included in its library. One insider says, “It's who blinks first, and whether or not anyone does blink."
Research has shown that consumers would spend a premium of $100 for unlimited music or pay $7-$8 monthly; the subscription model would only work on the iPhone, where it could piggyback on the network provider’s billing. Apple’s iTunes store is thought to be far less profitable than its hardware, reports the FT.