

An anonymous tipster seems to have contacted several Mac rumor publications with rumors about an unlimited music subscription within iTunes.

According to the e-mail, Apple will charge U.S.-based customers $130 per year (or $100 for MobileMe subscribers) for an "iTunes Unlimited" subscription starting in late October that will include the ability to download about half of the songs in the iTunes store in a 256-Kbps format – presumably AAC files that are protected by an updated, subscription-capable version of Apple's Fairplay DRM. The rumored subscription would only include half of the songs in the store because offering music under a subscription plan requires a new deal with copyright holders.

Subscription songs would be playable within iTunes as well as on certain supported devices – most likely the iPhone, iPod touch and other upcoming iPod models. However, older iPods would most likely be incapable of playing the files, because they almost certainly lack necessary technology to verify the validity of a subscription.

Steve Jobs has mocked music subscriptions in the past, maintainingthat while the rental model makes sense for movies, consumers want toown and collect music. However, he admits that the average iPod userhas purchased only 22 songs from the iTunes music store. The ability ofconnected players such as the iPhone and iPod Touch to download newsongs over the air may have convinced the Apple CEO that subscriptionscould be the best way to get people to consume – and pay for – moremusic.

Subscriptions will only be available on a yearly basis, accordingto the tipster, while the current individual song pricing system wouldremain as is. When users sign into their accounts, they would see a"Get" button instead of a "Buy" button, for songs that are available aspart of the subscription.

Here's the portion of the tipster's e-mail that pertains to iTunes:

- 256-Kbps music; highest quality digital music subscription service ever

- 50 percent of U.S. store available for iTunes Unlimited at launch, U.S.-only launch

- Availablethrough iTunes or retail box a la MobileMe, funds applied throughiTunes gift cards cannot be used towards subscription purchase

- $129.99 standalone or $179.99 with MobileMe, current MobileMe subscribers can add iTunes Unlimited for $99.99

- One-year subscription period

- Current a la carte options unchanged

- When signed in to subscription account, "Buy" is "Get"

- "Download and Play throughout iTunes Unlimited Subscription" or "Buy and Keep"

- "Buy and Keep" option available for downloaded subscription songs, purchased version replaces subscription version

- Late October launch with iTunes 7.8

We've contacted an Apple spokesman for the company's standard "no comment" response, and will post that when it comes through.

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(MacDailyNews via CNET)