Potential big changes afoot in the way Apple handles iTunes downloads, with the FT reporting that discussions are underway regarding both “all you can eat” unlimited downloads, based on an at-purchase premium, and subscription-based downloads for the iPhone.  While Apple themselves refused to comment on the rumors, “executives familiar with the negotiations” cited disagreements over the price offered to the labels per-device as the primary stumbling block so far. 

Apple is understood to be offering around $20 out of the sale of each iPhone or iPod Touch in order for the labels to agree to catalogue access; this is a quarter of what Nokia have agreed to with their “Comes With Music” scheme announced last December.  “It’s who blinks first, and whether or not anyone does blink” commented one executive.

Subscriptions would be offered solely on the iPhone, based around the regular billing relationship with Apple’s carrier partners, whereas the one-time premium would be available for both the iPhone and iPods.  Figures suggested by market research have apparently indicated that consumers would pay $100 for lifetime downloads or $7-8 a month for a subscription package.

Part of the deal would include 40-50 tracks per year which the user would keep, even if they changed device or their subscription lapsed.  It’s not clear whether they would be DRM-free or simply with an open-ended licence, but it’s safe to assume the latter.