Apple To Give iPhone And iPod Customers Free Music Access

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SAN FRANCISCO (AP) - Apple Inc. is negotiating with record labels over a deal to give iPhone and iPod customers free access to the entire iTunes music library if they pay extra for the devices.
The Financial Times is reporting that the sticking point in the talks is how much Cupertino-based Apple will pay the record labels for the access. The newspaper cites unnamed music industry sources for Wednesday’s report.
Apple declined to comment.
The newspaper reports that Apple is looking at offering the unlimited music bundle with for the iPod and iPhone, and also a monthly music subscription service only for the iPhone.

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LONDON, Mar. 19, 2008 (Thomson Financial delivered by Newstex) — Apple Inc is in talks with music companies to offer customers free access to its iTunes music library if they pay a premium for its iPod and iPhone devices, the Financial Times website reports, citing unnamed sources.
The model under discussion is similar to the ‘comes with music’ model agreed between Nokia (NYSE:NOK) and Universal Music last year, it added.
Executives familiar with negotiations said the talks hinge on a dispute over the price Apple is willing to pay for access to the music companies’ archives, said the report.
Apple declined to comment on the plan, it added.
While Nokia is believed to be offering 80 usd per handset to its music industry partners, Apple has so far offered only 20 usd per device, said the report, citing two executives.
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