April 27, 2005
A Wild Theory About Apple and Subscription Services
Apple has consistently said they don’t have interest in the music rental-subscription market. There’s speculation
to the contrary, and, to many, Apple’s line seems like a silly business
move. Many iPod users are totally uninterested in Napster To Go because
of the incompatiblity and would jump at an Apple subscription, not to
mention Apple’s significantly superior catalog.
So maybe Apple isn’t resisting the rental-subscription model
exactly. The major record labels, which are generally annoyed
with Apple’s use of FairPlay DRM to restrict compatibility, might be refusing to license an Apple subscription service so long
as Apple refuses to support WMA and other portable players. And,
given Apple’s strategy of using iTMS to drive iPod sales and vice-versa, that move
would be totally counterproductive. Perhaps the record labels are
using the licensing as leverage, and Apple’s resisting anything that inhibits its
iTMS-iPod strategy.
Filed by Derek Slater at 2:33 am under General news
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