“Since Apple launched its wildly successful iTunes music store back in 2003, CEO Steve Jobs has adamantly refused to offer a monthly subscription service. If you want to buy music from iTunes, you do it either by the single or the album, that’s it. But that could soon change,” Paul R. La Monica reports for CNNMoney.
“Les Ottolenghi, CEO of INTENT MediaWorks, a digital distribution system that works with peer-to-peer networks, said he’s had meetings with people from Apple and he believes the company will announce a subscription service for iTunes within the next six months. ‘I think Apple is seriously considering a subscription offering right now even though they will probably tell you otherwise,’ he said. Spokespeople for Apple were not immediately available for comment,” La Monica reports.
La Monica reports, “So far though, it appears that Apple has made the right decision to spurn the subscription model. Rival online music stores, such as Napster, RealNetworks’ Rhapsody and Yahoo’s Y! Music Unlimited, that offer monthly subscriptions have failed to attract a lot of interest. In fact, I wrote yesterday about how teens widely prefer iTunes to subscription-based music stores.”
“But Ottolenghi said that even though music subscription services have struggled against iTunes so far, he doesn’t think consumers are necessarily averse to paying monthly subscriptions. He argues that because Apple doesn’t offer a subscription product, that’s why music fans haven’t embraced the model,” La Monica reports.
Full article here.
Subscriptions for music? Well, okay, whatever – for those that want that option. But, subscriptions for movies and/or TV shows, now that could have some real widespread interest!
Related articles:
CNET Editor: Apple will soon introduce subscription-based music and video service – June 01, 2006
Consultant: Apple iPod dominance holding back subscription services – April 17, 2006
EMI Music Chairman: Music subscription services like Napster and Rhapsody haven’t beeen huge – January 23, 2006
As always it would depend on the cost. $20 per month would work for me – that’s about as much as I pay for Netflix. Still the catalogue would have to be reasonably big.
“Subscriptions for music? Well, okay, whatever – for those that want that option. But, subscriptions for movies and/or TV shows, now that could have some real widespread interest!”
Yup…. true enuff …
But this article makes me wonder how this guy got his “Amazing Kreskin” abilities … and how does he know what His Steveness is thinking ??
And another thing …
Has anyone ever heard of the P2P called “INTENT MediaWorks” ??
Limewire, maybe …
Subscriptions are likely coming for sure, but for movies and TV shows, not for music.
“Subscriptions for music? Well, okay, whatever – for those that want that option. But, subscriptions for movies and/or TV shows, now that could have some real widespread interest!”
Exactly my thought
I’d like to see movie rental (maybe with a 7 day grace period).
It’s funny how opinions on this board can change so quickly. It wasn’t that long ago that people recoiled at the idea of subscription based TV and movies. Now it seems people are warming up to the idea.
Personally, I won’t buy an $TV until Apple has a subscription TV and movie service. I’ve already dumped my cable in favor of BLockbuster by mail, and I’ll drop Block buster if Apple has a reasonable subscription as well.
“[B]ecause Apple doesn’t offer a subscription product, that’s why music fans haven’t embraced the model.”
Uh, OK, whatever. So people really want a subscription based iTunes, they just haven’t had a public outcry over it, Apple’s consumer research says people want to own their music instead of renting it, and iTunes sells more music than all other services combined.
The real problem is that Steve Jobs is simply too stubborn to offer a subscription service, that’s why subscription services haven’t taken off. Sure. It’s all Apple’s fault for not offering subscriptions.
Subscriptions do make sense for movies and TV shows. Typically you watch a DVD a few times, and then it sits on the shelf gathering dust. Pay-per-view or On Demand has been popular for many years for precisely this reason.
I definitely could see renting a movie/TV show, or subscribing to a TV show so I don’t have to see commercials or so I can see a show I missed (like 24 from the beginning, say), but not with music.
Music and video are two different animals. You won’t see a subscription model for music on iTunes, but we will see one for video content.
I would really like to see a subscription model for movies and TV. I don’t care about music.
I’m hoping that will happen, but I’m not counting on it. The same thing impulse that drives Jobs to insist that the Ipod only has 5 (he actually only wanted 4) buttons also keeps him from changing mistakes. Two examples:
Cursor keys
Two buton mouse.
Steve was considering, but not after this guy jumped the gun…
Why wait when your friends at MS are offering this today and have been offering it for years?
I think I sound like MDN talking about Vista.
It’s funny how opinions on this board can change so quickly. It wasn’t that long ago that people recoiled at the idea of subscription based TV and movies.
———————-
Actually, I totally disagree with this statement..
Ever since talk of Apple TV and movies began, the two consistent gripes have been 1) The lack of a movie rental method and 2) The poor quality of the content that’s offered.. I never buy movies on dvd, I always rent, but I did purchase one movie from the iTunes store as a test and the quality is truly disappointing on my HD widescreen tv. If Apple begins offering higher quality content with a rental or subscription model, I will cancel my Netflix subscription in a heartbeat.
I would buy my music but rent the movies and TV shows! If I stream audio from a radio station in iTunes, there is no charge. Why can’t we stream TV shows if we do not want to keep them?
You can’t simply look at online music purchases (ie. the success of selling songs on the iTS) and be able to make a judgment about what consumers really want. That would be like saying that if people really wanted DRM-free songs they would be buying those instead of iTunes songs, and then naively concluding that the success of the iTS shows that consumers really want DRM. Similarly, just because people haven’t been going crazy over the existing subscription offers, that does not mean that people don’t want a subscription service.
There is absolutly no way I would ever ‘rent’ music. The idea of this is a huge turn off.
If this meeting ever took place, I’m guessing Mr. Ottolenghi didn’t pass the audition. Otherwise, he wouldn’t have blabbed about it, given Apple’s penchant for playing their plans close to the vest.
I agree with MDN take. Music subscriptions, no. Video/movie subscriptions, yes.
Macworld prediction: when Leopard is introduced a subscription model for TV and Movies will be introduced along with an update to Apple TV. Much like the iLife apps, the update to Apple TV and the subscription service will require the technology in Leopard.
Once that happens, count me in for an Apple TV.
As an everyday Mac user, I haven’t and won’t buy and iPod until they day they start offering subscription music. It’s the greatest thing in the world to sit down at your computer every Tuesday morning when new albums are released and be able to download 3 or 4 new releases and listen to them that day will sitting in my cubicle at work. Then I can get rid of the stuff that sucks and enjoy the new stuff I like without having to waste .99 a track on stuff I don’t really care to hear again. For those who enjoy sampling new music, there’s nothing greater than a subscription service. I understand those who want to own there music, but having the option to also sample new music with a subscription would be a great thing for Apple and for music fans.
I am a happy user of emusic.com which works on a subscription basis. The basic plans start at 9.99 USD per month for 30 downloads (tracks). This is a use it or lose it policy. If you don’t download your tracks you lose them. If you buy it on an annual basis instead of paying monthly, you get a 20% discount.
This model works very well for me and encourages experimentation with new music.
Did this guy pay any attention to the press conference in London last week?? With DRM beginning to fall by the wayside now for music, the chances of Apple starting a subscription music service are actually rapidly decreasing, not increasing.
As MDN pointed out though, a subscription service for TV shows and movies would be quite interesting however.
How many times are people going to flog this dead horse?
Subscription services had already failed repeatedly at the time when Apple was first evaluating the idea of the iTMS.
-jcr
The subscription service should be for TV shows and movies, and more like Netflix. For a set price per month, you are allow certain number of movies, and you get to keep it as long as you need, but you don’t get to rent another one until you return the previous one. If they do that, I’ll dump Netflix.
Some people want subscriptions. Let em have it and everyone else doesn’t have to use it!
DRM can be used for subscriptions only, makes sense huh?
How can people say DRM is falling by the wayside for subscriptions, when Apple doesn’t even HAVE subscriptions yet??? Subscriptions are NOT the same as purchases, so what is the point of even saying that?
BTW, consumers don’t mind DRM on rentals. The rental is over and then it just plain doesn’t matter. Future compatible or portable doesn’t ever become a problem with rentals because a rental HAS no future. That’s why a rental is CHEAP–which consumers like :p
Look how many movies are on the rental shelf at a store, compared to the purchase shelf. Rental of movies is BIG for a reason.
I don’t mind having a subscription service available… just as long as there’s a way to capture the streams to my HD
” width=”19″ height=”19″ alt=”wink” style=”border:0;” />
Subscription services are the future, but it will take Apple to make it work.
I know that runs contrary to conventional thinking, but consider how things could evolve. First, there is definitely interest in a subscription model for movies and TV shows. We already use this model with standard cable/satalite service or Netflix/Blockbuster rentals. We pay a monthly charge for access to this content.
AppleTV seeks to compete with both of these models for consuming media. Yet most of us don’t want to buy movies or TV shows, so without a subscription model AppleTV will not be able to compete very well.
So, say Apple starts a subscription service for movies and TV shows. Once you have canceled your cable or satalite service and are paying for this using your .Mac account, it would be very convenient to add music to your access. You are already paying a montly fee, just add a few more dollars for total access to the iTunes library and presto, instant music subscription service. Apple could offer both methods, buy to own or rent, but since you want rental movies, music will just tag along.
Apple will make it so convienent you won’t really think about it.
John: “Subscription services had already failed repeatedly at the time when Apple was first evaluating the idea of the iTMS.”
…which is a completely irrelevant point.