No Premium iPods Just Yet

Remember the all-you-can-eat iPods we talked about yesterday? As it turns out, Apple isn't actually considering throwing in premium iPods/iPhones, even though the idea of a subscription plan has been "kicked around" for about a year, a person familiar with the matter said, according to BusinessWeek. Still, that doesn't mean the idea wouldn't work, or that Apple won't put it into practice some day.

The fact of the matter is, as much as you hate it, rumors of premium devices are unfounded, according to people familiar with Apple's plans, while an official Apple spokesperson refused to give comments based on the rumor. Another person tight with Apple says there have been "no meaningful discussions" on the subject, the web site informs.

It has been revealed, however, that many customers are willing to pay a subscription for free access to a music library, while Apple would have it their way too, as customers paying say... $10 a month for unlimited access would set a predictable cash flow. The reality is, however, that average iTunes customers buy fewer than 30 songs (a month) and would rather download their tunes from a CD or using "other means," according to the same source.

Plus, as subscription services are continuously struggling to gain broader acceptance, Jobs believes an all-you-can-eat iPod would imply music rentals, as customers would be able to keep the music they download via the subscribed service, only for a limited amount of time, meaning the music is never theirs.

"There may be millions of people who would never buy into the iPod-iTunes ecosystem who'd be willing to pay $7 to $10 a month for all the music they can get," says analyst Michael Gartenberg with JupiterResearch. "If anyone can explain the benefits of a plan like this, it's Apple."

Well, what say you Apple?

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