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It only took the government 50 or so years to finally do something about major labels monopolizing radio by paying off the radio stations. Why would they do that? Limit consumer choice, squash the indies.

Fast-forward to tonight’s news. Rumour has it that the Apple is pitching the labels on a flat license that allows owners of the iPhone free iTunes downloads. The plan is dubbed “All You Can Eat”.

Sounds great at first: lots of choice for consumers, simple process to get music, labels get paid and artists get paid (even more these days).

And maybe it will be.

My main concern is the question of who controls the catalogue? Apple could buy the major labels and use them as a loss leader to sell iPods and iPhones, so payola is out of the question.  They may threaten to withhold catalogues, but that probably won’t work either.  Hopefully, they won’t figure out how to game the iTunes system.  Nude pictures of Steve-o?

My first reaction was that this was going to be a real crap deal for independent artists and labels. If you are on iTunes, great. Not on iTunes? You’ve got a problem.

For years, the labels have been competing with free. Why pay for a CD or download when you can fill your iPod with hot tunes for $0.00? (plus broadband charges – but that’s another story)

So now anyone not on iTunes is competing with free. (plus iPhone and data charges)

If this works out, then the next logical step is for the big ISPs to offer similar offers. Get Roadrunner and get free iTunes downloads! Get Rogers and get…. nevermind. I’ll save that rant for another post.

Tags: iphone, iTunes, payola