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When Steve Jobs speaks, the ripple effects reverberate across the music industry. But sometimes, the mere rumour of Jobs-speak can create the same result.

Mr. Jobs revolutionized the music business with the ubiquitous iPod device and the iTunes store. Recently published reports suggest the Apple Inc. chief executive may be planning a seismic shift in the company's music retail model which could once again change the way people pay for their favourite songs.

The Financial Times reported Wednesday that Apple executives were holding discussions with major music labels about the possibility of a new subscription-based service that would provide users with access to the entire iTunes catalogue in return for a one-time fee tacked on to the price of iPods and iPhones. Apple has not commented on the report.

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But in the past, Mr. Jobs has been cool to the idea of adding a subscription-based service to iTunes.

"Never say never, but customers don't seem to be interested in it," he told reporters last April. "The subscription model has failed so far."

It's comments like those that have analysts questioning the validity of the report.

"The vehement opposition to a subscription service by Mr. Jobs makes me wonder if that's something that they would really consider," Yankee Group research analyst Josh Martin said.

"But then again, he also said no one would want to watch videos on their iPods either, and look where we are today."

If true, the move would signal a major shift in strategy for Apple, which commands more than 70 per cent of digital music sales and is now the No. 2 overall music retailer in the U.S.

Apple charges users 99 cents to purchase and download a song from its iTunes store. Under the reported new model, users would pay either a premium fee on new Apple devices or a monthly subscription charge to gain unlimited access to the iTunes music library for as long as they own the device, however they would not own the music.

Cell phone giant Nokia signed a deal with Universal Music in December to launch a similar program called "Comes with Music," which will give mobile owners access to a library of songs with each new device.

Although the Times story said executives believe the public has a "strong appetite" for services that bundle music with devices, analysts are not convinced.

Subscription services such as Napster Inc. , Microsoft Corp.'s Zune Pass and RealNetwork's Rhapsody have struggled to gain traction in the digital music market. Only about seven per cent of Internet users have reported using a subscription music service, according to Forrester Research analyst James McQuivey.

"Thanks to records, tapes and CDs the record companies have taught us that music is something we can take with us to our friend's house," he said. "People want to own their music because ownership means control. The problem with a subscription model is that the minute you stop paying, you don't have that music any more, and that is a completely different business model for consumers."

It is believed that Apple generates little revenue from the iTunes store itself, but rather uses the service to keep customers married to its devices.

The rise of MP3 music files, however, has started to weaken Apple's hold on downloadable music. Most of the music in Apple's iTunes store contains DRM (digital rights management) software that prevents the songs from being played on non-Apple devices. As demand for universal, DRM-free MP3s grows, Apple faces increased competition from sites such as Amazon.com.

"Apple really could be trying to do this because it's a way to guarantee their devices retain the power in the market that they have accumulated," Mr. McQuivey said.