The New York
Post is reporting that the record companies "might be on
the verge" of finally throwing in the towel on the fight for variable pricing in the iTMS. The
labels are reportedly pulling out all the stops, with some executives even telling the Post that they are considering
allowing their label's deal to simply run out so they could pull their catalog from the store.
With neither side backing down, and the subscription model not even an option in Jobs' eyes, it sounds like things might get interesting soon as every label's contract is due for renewal within the next couple of months. Oddly, the Post forgot to mention that, even with the current iTMS flat-rate $.99/song model, the labels are already raking in far more cash with each song and album sold than with traditional CDs.
While Engadget sounds like they're clamoring for an iTMS subscription model that revokes your entire library the moment you decide to cancel service, I have to say I'm hopeful that Jobs can successfully stick it to the labels and make them deal with a pricing model that actual *gasp* favors consumers. Stay tuned for more iTMS drama as it unfolds.