Apple iPhone users now have more flexibility with their music catalogs and the music industry is getting a swing at new revenue streams tied to the device, thanks to an upgrade rolled out by Apple Inc. today.

Of the more than 100 new features in the update to the iPhone software, the ones with the biggest impact on the device’s music capabilities include:

- The ability to create applications that can access music stored on the device, allowing the songs to be included in such things as iPhone games.
- Support of new business models, such as in-app purchases and subscriptions. This feature is one record labels have been asking for. Rather than just buying an iPhone app once, upcoming programs can carry a monthly charge for ongoing access.
- The ability to search the iPod library.
- Peer-to-peer support so iPhone users in the same area can interact with each other via their devices, and the addition of multimedia messaging.

During the upgrade’s unveiling in Cupertino, Calif. today, Apple revealed that the iPhone software development kit has been downloaded 800,000 times, with more than 50,000 developers registered with the iPhone program. More than 800 million applications have been downloaded to date.