Apple’s iPod and corresponding iTunes service have enjoyed a blessed existence. They have sold a bazillion songs at $.99 to dominated the online music industry. During this time others have hopped into the game hoping to compete. Microsoft released the Zune player and Zune Marketplace service in 2006 and has seen modest returns. Music subscription services like Napster and Rhapsody thrive in their niche which is offering unlimited DRM music downloads. Amazon jumped in head first in 2007 partnering with the major labels to provide a very large DRM-free song selection.

So what does all of this mean for the future of iTunes? There have been articles floating around as of late that Apple is considering a subscription service of sorts. The premise as I understand it is that Apple would preload iPod’s with music and after a specified period of time the customer would pay a monthly fee to continue access. What will it take to make this happen? Deals with each of the major labels for starters. In the past the labels have snubbed Apple. Last year they partnered with Amazon rather than offer their DRM-free libraries through iTunes which already boasts a huge customer base.

In my opinion there is something that can bring the two sides together. Both Apple and the music labels speak the same language which is “profit”. Apple has seen lots lately and the music labels would like a piece of the pie as their sales continue to dwindle.

Would a stronger partnership between Apple and the music labels be a positive? It depends who you ask. Many customers would drool over the thought of accessing millions of songs for a flat monthly fee from iTunes. Also a stronger relationship could bring down the price of per song downloads. Amazon is a good example as they already sell DRM-free tracks for well under the price of iTunes.

Bottom line – iTunes is king and could cement that title for years to come if they strike a solid deal with the record labels. Record labels could benefit greatly from the profits attached to this new market. If a deal is struck then we predict the iTunes music subscription service will gain huge market appeal behind Apple’s creativity and a music hungry customer base.