OPINION
Rental System Would Give iTunes a Powerful Punch

Except, perhaps, when it come to music. This week's revelation that Apple (Nasdaq: AAPL) is negotiating with major record labels about offering a subscription to its entire iTunes music library is the best news I've heard in ages.

Details are scarce. Apple would not comment on the report, which surfaced in British newspaper The Financial Times. But I don't see how this could be anything but a positive for enthusiastic music fans who want inexpensive access to more than 6 million songs.

One-Time or Monthly Fees?

Consumers would either pay a one-time premium when they bought a new iPod or iPhone, or a monthly fee. An unnamed executive in the article said research shows that people would pay up to a US$100 premium for unlimited access to music for the lifetime of the device, or a monthly fee of $7 to $8 for a subscription.

Those numbers seem low to me.

If iTunes launched a $10 a month subscription service, many people would gobble it up. We pay $50 or $60 a month for a bunch of cable or satellite TV channels we never watch.

You could have virtually any song you want, whenever you wanted it -- especially if you had an Internet-enabled touch or iPhone, allowing you to choose from iTunes' library on a whim.

Great for Flash-in-the-Pan Bands

And if a song wasn't carried by iTunes?

1) Congratulations and join the club, you just might be a card-carrying music snob; 2) The song probably doesn't fall under the jurisdiction of the RIAA, so ... go snag it elsewhere.

Come on, I meant at a record store. Or from a subscription service like eMusic, which caters to indie labels and sells DRM-free music that works on all players.

A $10 subscription would equate to $120 annually, which isn't an outrageous amount of money to spend on near-infinite tunes. (Although it would be nice if a subscription could serve a household. And that's assuming Apple doesn't limit downloads.)

Plus, you wouldn't be wasting your cash on some buzz band you won't be listening to in six months. Would you rather buy that Vampire Weekend album or just have it be a part of an "all you can eat" subscription buffet?

Let's face it, today's new bands feel suspiciously like tomorrow's American dollars in Europe.

Don't Get Greedy

An iTunes subscription service may be necessary for the survival of major record labels, which need to find ways to monetize music. But it could be a gut punch for other subscription services. Rhapsody, Napster, eMusic and the like have weaknesses, be it smaller libraries, capped downloads, or DRM (digital rights management) hang-ups that prevent music from being played freely.

Or maybe it would actually help these competitors by making the idea of subscribing to music mainstream.

The key is that iTunes and record labels don't get greedy. Don't charge too much, guys. Don't charge extra for new music or "special" songs. Do the service right or don't do it at all.

We're all ears.