Report: Apple May Offer Free iTunes Access

Negotiating With Record Labels Over Deal For iPhone, iPod Customers If They Pay Extra

(AP)  Apple Inc. is negotiating with record labels over a deal to give iPhone and iPod customers free access to the entire iTunes music library if they pay extra for the devices.

The Financial Times is reporting that the sticking point in the talks is how much Cupertino-based Apple will pay the record labels for the access. The newspaper cites unnamed music industry sources for Wednesday's report.

Apple declined to comment.

The newspaper reports that Apple is looking at offering the unlimited music bundle with the iPod and iPhone, as well as a monthly music subscription service only for the iPhone.

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The irony here is that in an unprecedented time of "format" change for record labels and recording artists the winner here is the company providing the formatting and distribution. Wow! Apple will probably control the lions share of all media delivery soon.