Analyst: Apple has good reasons to reject music subscriptions on iTunes Store

Apple Store“CNN Money has a fairly thin story about how the CEO of INTENT MediaWorks believes Apple is preparing to offer a subscription music service within the next six months,” Blackfriars Communications’ Carl Howe writes for SeekingAlpha.

“I think the real motivation behind the subscription idea isn’t Apple, but the record companies,” Howe writes.

Howe writes, “The concept of subscriptions on iTunes appears about as perennially as weeds. But while some consumers may find the concept attractive in theory, for Apple, this strategy just doesn’t work for three reasons:”

1. Subscriptions require Digital Rights Management [DRM] that turns off consumers
2. Labels would have little incentive to create good products
3. iTunes’ existing subscriptions create more satisfaction

Howe writes, “In addition to the three reasons I listed above, Apple’s iTunes has about two billion revenue reasons this year to pursue its own course in music subscriptions and to reject ‘me too’ rental services. Perhaps that’s reason enough.”

More in the full article, including discussion of the three points above, here.

[Thanks to MacDailyNews Reader “LinuxGuy and Mac Prodigal Son” for the heads up.]

Related article:
Music labels to ask Apple to add subscription service to iTunes Store – April 13, 2007

45 Comments

  1. …and I’m tellin’ ya, eMusic is a great little music service too. You do need a subscription, but the prices are reasonable and the service is geared toward independent labels, but also has major labels/artists. I like it.

  2. I already have a Octo Pro, so in theory I would be selling two of them and retiring on the cash from selling all that DRM free music.

    Anyway it was just a idea what people could do with subscriptions.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.