Apple mulls unlimited free access to iTunes, report says

SAN FRANCISCO — Apple is mulling a plan to upend its iTunes business by giving people unlimited free access to the music library if they're willing to pay more for the iPod and iPhone devices they use for playing and storing the digital media, according to a report published Wednesday.

Some analysts threw cold water on the plan outlined in the Financial Times, however, saying Apple would risk creating an "accounting nightmare" and alienating some artists if it started giving away songs on its iTunes online store.

Rumors have buzzed through the industry for a couple of years that Apple might open iTunes for free downloads. Meanwhile, Apple's rivals are experimenting with new ways to distribute music online — including giving it away.

The newspaper cited unnamed music-industry sources in reporting that Apple is negotiating with record labels over a deal to offer a monthly music subscription for the iPhone, as well as an unlimited music bundle for both the iPod and iPhone.

The cheapest iPods — the Shuffle model — start at $49, and the cheapest iPhones start at $399.

The Financial Times didn't say how much the prices of those devices would jump if the proposal were to go through. But it said the sticking point in the discussions would be how much Apple will pay the labels for access to their music libraries, with Apple now offering to pay just $20 per device.

Apple did not respond to requests for comment.