ReadWriteWeb

Magnatune, a small and eclectic online record label, just released its first iPhone app. As far as we know, this is the first time that a record label has released an iPhone app that allows its users to play every song of every artist on its label for free and as often as they want. The only restriction on the app is that every song is followed by a short announcement with the name of the artist and title of the song.

Successful Creative Commons music store Magnatune announced today that they have made another radical transformation in their business model. Customers can now pay as little as $5 per month for unlimited streaming and $10 per month for unlimited DRM-free downloads, they can purchase as little as 1 month of membership and they can use Paypal's recurring payments feature to stay subscribed if they wish. The company, whose motto is "we are not evil," then gives 50% of revenues to the artists.

We really like what Magnatune is doing and we think this business model is great, but we're concerned that the service is still too antiquated in its music delivery to get customers beyond the fact that it has a really obscure catalog.