As the time for Apple's contract renewal negotiations with record labels grows near, Apple CEO Steve Jobs has told Reuters that Apple is unlikely to offer a subscription-based music "renting" model on its iTunes Store. This model has been adopted by the likes of Napster, which collects a monthly fee and gives users access to as many songs as they want. However, users must continue paying the subscription in order to have access to their music. According to Jobs, customers "don't seem to be interested" in that particular model because "people want to own their music." He goes on to say that the subscription model "has failed so far," although he doesn't rule out Apple's adoption of that model entirely—"Never say never," he adds.
Instead of pushing for a different sales model, analysts believe Jobs will pressure the world's three yet-unconverted major record labels—Universal, Sony BMG, and Warner—to offer music with no digital rights management protection. "We've said by the end of this year, over half of the songs we offer on iTunes we believe will be in DRM-free versions. . . . I think we're going to achieve that," says Jobs.
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