14 DAY TRIAL // The iTunes Store has been going strong for quite some time now, everybody is happy with it and no major changes are expected. Subscription for music is a model that simply doesn't work for customers as shown by the lack of success of Napster and others, but it would be the desired method of enjoying video content. While many are still waiting to be able to rent movies, Apple might be preparing a special ad-funded iTunes.
The documents from the recent UK Copyright Tribunal's decision on online royalty rates for music publishers won't be read by many people, but those who do keep a close eye on them have come across evidence that Apple is considering the introduction of ad-funded music on iTunes. The information was dug up by digital music consultancy Music Ally, who published it in its latest fortnightly report.
iTunes VP Eddie Cue is quoted saying that Apple would only pay advertising revenue where "that revenue is earned as a result of an advertisement, sponsorship or a click-through link located on a Licensed service ? and only where the Licensed Service is offered to the User at a price which has been artificially depressed to reflect such revenue." Cue goes on to specify that he was referring to "The placement of third party advertising at the start, end or during actual delivery of a Repertoire Work to a customer by way of a permanent download." Meanwhile, the QC overseeing the Tribunal decision, Judge Fysh, is quoted as saying "iTunes may well carry advertising in future - hence their interest in these Applications."
These discussions are clearly an indication that Apple is at least looking into the possibility of ad-funded downloads, even if they might not be planning or intending to launch such a service in the near future.