Apple iPod Nanos in San Francisco, September 5, 2007. Apple is in talks with major music companies to offer customers free access to its entire iTunes music library in exchange for paying a premium for its iPods and iPhones, the Financial Times said. REUTERS/Robert Galbraith

NEW YORK (Reuters) - Apple is in talks with major music companies to offer customers free access to its entire iTunes music library in exchange for paying a premium for its iPods and iPhones, the Financial Times said.

Citing people familiar with the talks, the paper said the negotiations hinged on a dispute over the price Apple would be willing to pay for access to the labels’ libraries.

One industry executive said research showed consumers would pay a premium of up to $100 for unlimited access to music for the lifetime of a device, or a monthly fee of $7-$8 for a subscription model.

Apple was not immediately available for comment.