Apple Wants More Mobile Music

As of this week, iTunes offers ringtones as $0.99 upgrades to its regularly priced $0.99 music tracks, but not all tracks can be converted into the profitable jingles we hear when receiving a call. According to the New York Times and Billboard.com, Apple has begun to approach major music labels in attempts to expand the variety and depth of their downloadable inventory.

As of this week, iTunes offers ringtones as $0.99 upgrades to its regularly priced $0.99 music tracks, but not all tracks can be converted into the profitable jingles we hear when receiving a call. According to the New York Times and Billboard.com, Apple has begun to approach major music labels in attempts to expand the variety and depth of their downloadable inventory.

This is not the only way in which Apple plans to improve shortcomings to its popular iPhone and iTunes music services. While they plan to expand ringtones beyond the 500,000 already available, they also aim to extend the capability to ringback tones—those tones we hear instead of a “ring” when making a call—as well. Apple also wants to offer better wireless access for their services and devices; while iPhone currently features a slower, more outdated “WiFi” connection, their goal of upgrading to a speedier “3G” connection would allow users to surf the web with more ease and download from more locations.

Apple has had disagreements, however, with various labels over pricing concerns. Labels naturally charge more for mobile music downloads than for regular computer downloads, and it is an area in which the stakes are high for both parties. Apple, the dominant player in digital music, is growing fast as a mobile phone maker and service provider, while many outstanding requests of labels to Apple have yet to be addressed. According to the Times, music executives see an opportunity in these negotiations “to press Apple on some of their other longstanding requests. Top among them is the flexibility to set different prices on individual tracks,” which Apple doesn’t currently allow, and to dictate which tracks from whole albums can be sold as independent entities.

Unconfirmed reports suggest that a one-time charge for unlimited iPhone music downloads might accompany future iPhone purchases as an option for compromise. Keep checking the American Songwriter newsroom for updates on Apple, the iPhone, and the current wireless web battle—surf’s up, dude!