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Apple has been quietly working with the big four record labels in hopes the transition to digital will be more profitable, as those buying tunes prefer to do it individually than buy albums.

Margins on albums are much higher, and so more desirable to sell, but I think it’ll be hard to pursuade music lovers to change from customization (which is really what’s happening), than have to buy a complete album, which has never been a favorite of fans. They bought them in the past because they had to, not because they liked all the songs on it.

Under the codename “Cocktail,” Apple has been working with EMI, Sony Music, Warner Music and Universal Music Group to develop a new type of interactive experience by adding on more material, liner notes, video clips and lyrics sheets, where users will then be able to clck through to stuff that is of interest to them.

While Apple was working on a tablet-sized computer that will be released sometime in the upcoming holiday season, it is thought that there is a possibility it will be launched along with the inclusion of these new deals with the music industry.

Now to me, it would be smarter to add extra stuff to individual songs and see if a better price can be attained. I think there is where the profits and willingness for users would be, not in the broken album model which has pretty much already been rejected by end users.

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