Potential big changes afoot in the way Apple handles iTunes downloads, with the FT reporting that discussions are underway regarding both “all you can eat” unlimited downloads, based on an at-purchase premium, and subscription-based downloads for the iPhone. While Apple themselves refused to comment on the rumors, “executives familiar with the negotiations” cited disagreements by the price offered to the labels per-device as the primary stumbling block so far.

Apple is

understood to be offering around $20 out of the sale of each iPhone or iPod Touch in order for the labels to agree to catalogue access; that is a quarter of what Nokia have agreed to with their “Comes With Music” scheme announced last December. “It’s who blinks first, and whether or not anyone does blink” commented one executive.

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Original post by Chris Davies