Universal Prepping $5/Month Music Service?

First, Universal Music refused to extend its iTunes contract with Apple, then it began offering DRM-free tunes through the likes of Rhapsody and Wal-Mart. Now, according to BusinessWeek, the music giant is looking to take on iTunes with Total Music, a service that would offer all-you-can-eat tunes for $5 a month.

BusinessWeek reports that Universal has already enlisted the help of Sony BMG and is in talks with Warner Music about partnering on Total Music—and between them, the three labels represent about 75 percent of the music sold here in the U.S., according to the story.

So, how exactly would the labels afford to essentially give away their catalogs for just $5 (or less) a month? The BusinessWeek story says that the labels would lean on MP3 player manufacturers to subsidize much [Edit: or all] of the subscription costs, with the idea being that the sweet subscription deal would significantly boost sales. I'm guessing that unlike Universal's DRM-free "experiment" with Rhapsody, tunes from Total Music would come loaded with Windows Media DRM—meaning they'd work on the Zune and Windows-friendly players like those made by Toshiba and Samsung, but not the iPod.

It's an interesting idea, and I'm certainly in favor with any new service that competes with the behemoth that is iTunes—for us consumers, more choice is always a good thing. Of course, the hurdle that Total Music would have to overcome is the iPod factor: that is, how to convince the general public that there are non-iPod MP3 players out there worth buying. Personally, I'd be sorely tempted by the idea of an ultra-cheap subscription service with one of the new wireless-syncing Zunes; imagine a self-updating playlist of new music that automatically syncs up to your player each night. Pretty cool.

Related:
Universal Music Takes on iTunes [BusinessWeek]