Friday, March 03, 2006

US Probes Into Online Music Pricing

The US Justice Department has opened an investigation into possible collusion by four global music companies over the setting of online music prices, according to The Wall Street Journal.

The companies involved are EMI, Universal Music, Sony BMG and Warner Music, according to the Journal. The investigations come as the music industry grapples with how to compete in online music sales as sales of CDs decline.

At issue is the pricing levels charged for music downloads and, specifically, whether the labels have colluded over price fixing. Related to this are the licensing renegotiations with Apple. While Apple has favoured a fixed 99 cent charge per track, the labels have been keen to pursue variable pricing, charging as little as 19 cents for some songs but more than 99 cents for new releases by major artists.

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