Apple considers bundling iTunes

CUPERTINO, Calif., March 19 (UPI) -- California computer maker Apple is considering selling unlimited access to its music library when customers purchase iPhones or iPods, sources said Wednesday.

The new approach of bundling music offerings with sales of the devices could boost Apple's market share and help the music industry, the Financial Times reported.

Apple is considering charging $100 for unfettered access to iTunes for the life of the device or charging a monthly subscription fee -- around $7 to $8 a month.

Subscriptions, however, would only work with iPhones, which already have a subscription provision attached through a mobile phone carrier, analysts said.

Nokia is set to launch "comes with music," in the second half of 2008, bundling music with the sale of hand-held devices. Nokia signed a contract with Universal Music in December, the report said. It is looking for other music labels to expand its offerings.

Industry observers say Nokia is offering $80 per handset to its music distributors, while Apple has considered an offer of $20 per handset, the Financial Times said.