Apple to offer all-you-can-eat subscriptions to iTunes?

Looking at how Universal Music Group has decided not to renew their contract with the iTunes music store (which is by the way the third largest music retailer in the U.S., not just online, but globally!), I predict two things will happen:

1. Apple will offer a subscription-based model, where you pay a weekly or monthly fee, and can download as much as you want from their catalog. Right now, iTunes imposes the price they buy their music at, and it has been patently obvious that many labels were not at all happy with the $0.99 a song pricing scheme.
2. UMG will see their music pirated like no other label. If people cannot even get their music from a convenient and easy to use source, for a one-could-argue reasonable price, they will find ways to get it from other sources. There are alternatives to piracy, such as MP3Search.ru, which provide songs at $0.19 a piece, DRM-free, and they have a very extensive repertoire (albeit sometimes not as complete as iTunes’).

Will this prediction come true? It depends on how much it would hurt iTunes to lose Universal, and I think it would hurt a lot.