• March 20, 2008

Apple is in talks with major labels including Sony BMG, EMI, Warner Music Group and Universal Music Group to launch an all-you-can-eat digital music service that bundles free access to iTunes on its iPod and iPhone devices, according to a Financial Times report.

To date, Apple has sold music on an a-la-carte basis via iTunes. The proposed new service would appear to compete with Nokia's "Comes with Music" initiative launched in December. But while Nokia reportedly pays record labels $80 per handset, Apple so far is only offering $20 per device.

Apple is reportedly considering a subscription model as well. Market research cited in the Financial Times story indicated that consumers would pay up to $100 for unlimited music access over the life of a device, or a monthly subscription of $7 to $8. Apple has declined to comment.

--Mark Walsh