From Apple Said to Weigh Unlimited Music Deal -

Apple Inc. is mulling a plan to upend its iTunes business by giving people unlimited free access to the music library if they're willing to pay more for the iPod and iPhone devices they use for playing and storing the digital media, according to a report published Wednesday.

Well, Apple's shares are up again. If this jive goes through, I imagine they'll jump again. I mean, what do you do to get people to buy another iPod if everyone's already got two? You bundle them with unlimited music.

This is a good short-term idea, but potentially horrible long-term. As the Forbes piece also said, "Some analysts said the iTunes store is too valuable to Apple for it to give away the music in it." So if it happens, I'm betting it's a bundle with new iPod purchases, so BOOM goes the sales numbers that crushed the stock a few months back, and they're sold with a pretty hefty surcharge. And I bet there's some sort of sunset on the access, if only in the anticipated life of the 'pod, which is pretty well known at this point.

Why horrible long-term? What do you sell the multiple iPod owner who already has unlimited access to the iTunes music store? Oh yeah, movies.

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