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The world's biggest music labels are expected to ask Apple to introduce a music subscription service to its iTunes digital media store as part of negotiations to renew their agreements with the computer company.
Universal and other labels say a subscription service could prove more lucrative for them than iTunes' prevailing model of charging consumers 99 cents per track, because it would increase consumption of music. It would also entitle the labels to a share of monthly payments, in addition to small licensing fees each time their songs are played.
Nonetheless, music companies have largely been forced to accept Apple's terms as iTunes accounts for about 75 per cent of online music sales in the US in spite of competition from Microsoft's Zune and other services.