Come and get it

Apple may provide unlimited free access to iTunes music in exchange for pricier iPod and iPhone devices. The company is in talks with major record companies about making the move a reality, according to AP News.

About 10 percent of Apple's revenues comes from iTunes, totaling $2.5 billion in 2007. iTunes is currently the no. 2 music retailer in the US.

For this reason, some analysts argue that iTunes is too valuable to tamper with. Other music stores have offered subscription-based plans, but none have been able to match the brand-driven profitability of iTunes' pay-per-track and per-album model.

iTunes already offers some tracks for free, typically to promote new bands. And giving customers access to unlimited music — in exchange for pricier hardware — is increasingly examined as a way to meet copyright-defying pirates halfway.

Research betrays a big appetite amongst consumers for an "all you can eat" model, writes MediaBuyerPlanner. One executive familiar with the negotiations said consumers are willing to pay up to $100 for unlimited access to music for the lifetime of the device.

In February, Omnifone unveiled plans for a mobile handset called MusicStation max, which would come with unlimited music downloads. Nokia also announced a deal with Universal Music. Some handsets now come with unlimited free downloads from the Universal catalog.

Similar plans, dubbed "Total Music" offerings, are underway among major labels. The schemespurred the US Justice Department to send letters to the labels involve, asking them to elaborate on their intentions to "give" music away when they have challenged the notion for so long.