Analyst: music-enabled mobile phones will lead to iTunes subscription model

Posted Apr 27, 2007 at 4:37AM EST by Karl B.

Listed in: Tags: apple news, Steve Jobs

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We've previously reported that Apple CEO Steve Jobs himself said that a subscription-based model for Apple's iTunes store isn't coming any time soon, but during our routine visits to the Intertubes we came across something that suggests otherwise.

In Seeking Alpha, Eric Savitz writes that Pacific Crest Securities analyst Andy Hargreaves believes that Apple "has built and is capable of launching a subscription music service." Hargreaves points towards increasing competition from cellular carriers and attractive economics for a subscription service as reasons to believe that "will drive Apple to launch its subscription service within the next 18 months."

According to Savitz, Hargreaves predicts that a billion music-enabled phones will be sold next year and that carriers' music offerings will become "extremely viable competitors with iTunes." Hargreaves also predicts not only a subscription services but also more personalization options, tiered pricing and "more social aspects."

Via Seeking Alpha

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