“Last week America’s Department of Justice opened an inquiry into ‘the possibility of anti-competitive practices in the music-download industry.’ The department’s action is the second investigation into possible price collusion in music-downloads in America: in December 2005 Eliot Spitzer, New York’s crusading attorney-general, announced a similar inquiry. But nearly nothing is known about exactly what practices prompted the investigations,” The Economist reports. “What has probably happened is that Mr Spitzer and the Department of Justice have been dragged into a massive public row between the music industry and Apple, a computer-maker which has 83% of the market for music downloads through its iPod music players and iTunes download service. The music majors want Apple to stop charging a fixed price of 99 cents per track and $9.99 for an album. They want variable pricing, so that new releases can be priced higher than older stuff.”
“The music companies will soon have a chance to get their way,” The Economist reports. “Their contracts with Apple are up for renewal from April onwards. They will presumably tell Steve Jobs, Apple’s chief executive, that he cannot have their music unless he pays them more than the 65-75 cents they get now. That could force Apple to raise its retail price. The music firms’ strongest position, of course, would be to present a united front. That three of the big four—Sony BMG, Warner Music and EMI—are all saying roughly the same thing about Apple’s pricing has aroused the suspicion that they may be colluding, says a Washington lobbyist. The music labels reckon that the Digital Media Association, which represents Apple, among others, has complained to the Department of Justice.”
Full article here.
[Thanks to MacDailyNews Reader “David G.” for the heads up.]
Advertisements:
• Apple’s brand new iPod Hi-Fi speaker system. Home stereo. Reinvented. Available now for $349 with free shipping.
• Apple’s new Mac mini. Intel Core, up to 4 times faster. Starting at just $599. Free shipping.
• MacBook Pro. The first Mac notebook built upon Intel Core Duo with iLife ’06, Front Row and built-in iSight. Starting at $1999. Free shipping.
• iMac. Twice as amazing — Intel Core Duo, iLife ’06, Front Row media experience, Apple Remote, built-in iSight. Starting at $1299. Free shipping.
• iPod Radio Remote. Listen to FM radio on your iPod and control everything with a convenient wired remote. Just $49.
• iPod. 15,000 songs. 25,000 photos. 150 hours of video. The new iPod. 30GB and 60GB models start at just $299. Free shipping.
• Connect iPod to your television set with the iPod AV Cable. Just $19.
Related articles:
U.S. DOJ opens probe into online music pricing at major labels – March 03, 2006
New York State antitrust probe of music labels could benefit Apple, keep 99-cents per song price tag – January 04, 2006
New York Attorney General Spitzer probes digital download wholesale pricing – December 23, 2005
Will Apple’s iTunes Music Store be forced to raise prices by greedy music labels? – November 17, 2005
EMI chief: Apple’s Steve Jobs may alter iTunes pricing model within the next 12 months [UPDATED] – November 16, 2005
In 99-cent fight with ‘Looney iTunes’ labels, Apple CEO Jobs will get whatever Jobs wants – September 29, 2005
Warner music exec discusses decapitation strategy for Apple iTunes Music Store – September 28, 2005
Warner CEO Bronfman: Apple iTunes Music Store’s 99-cent-per-song model unfair – September 23, 2005
Analyst: Apple has upper hand in iTunes Music Store licensing negotiations with music labels – September 23, 2005
Steve Jobs plays high-stakes poker with greedy record labels – September 22, 2005
Record labels accuse Apple CEO Jobs of ‘double standard’ as they seek to force iTunes price increase – September 21, 2005
Apple CEO Steve Jobs to repel ‘greedy’ record companies’ demands for higher iTunes prices – September 21, 2005
Apple CEO Steve Jobs vows to stand firm in face of ‘greedy’ record companies – September 20, 2005
NYT’s Pogue to record companies: it’d be idiotic to mess with Apple iTunes Music Store prices – August 31, 2005
Apple CEO Steve Jobs prepares for pivotal fight on digital music prices – August 28, 2005
BusinessWeek: Apple unlikely to launch music subscription service – August 15, 2005
Record labels to push Apple for higher iTunes Music Store prices in 2006? – August 05, 2005
Study shows Apple iTunes Music Store pay-per-download model preferred over subscription service – April 11, 2005
Record labels look to raise iTunes wholesale prices, music industry fears Apple’s market domination – March 05, 2005
Report: Apple CEO Steve Jobs ‘angered’ as music labels try to raise prices for downloads – February 28, 2005
Report: Music labels delay Euro iTunes Music Store fearing Apple domination – May 05, 2004
Greedy Big Five music labels looking to jack up iTunes songs to $2.49 each? – April 22, 2004
Davida, RSS sucks. So does MDN.
I went to Harvard’s Kennedy School of Govt, 95% liberals, where many of my professors worked for Clinton when he was President. And, the claims that Clinton and the DOJ was harder on business than a Republican Admin, is just utter nonsense and rubbish. Both parties are soft on business. Clinton is known for talking a good game with little follow-thru, which makes his results little different than Bush’s. And, as noted above, by “Prepforaslaponthewrist”, his example fits this mold exactly.
I wish people wouldn’t put political rubbish on these boards, cause there isn’t really enough space to discuss these topics with any sense of rationality.
I will stop visiting the site if the new ads persist.
I installed Adblock Plus because I got sick and tired of the pop-under ads here at MDN and other sites that somehow managed to defy my “Block Popups” setting.
Advertising is effing bandwidth theft 90% of the time, IMHO. I don’t mind the Apple ads so much but the popups can suck it.
it’S GOODBYE MDN IF THESE ADS CONTINUE
—
why? no one clicks on internet ads and thats why there are 4 billion ads on this page.. MDNs getting NO clickthroughs and scraping by..
What happened to the page about MDN’s new “interstitial pop ads?” It’s gone! It must have been, er… interstitial.
Apple’s income wouldn’t change much if online sales were lost. However the perception would be a lot different. The stock would plumet, even though most people buy ipods for their own music from CDs.
Ha.ha.ha all you fools writing in saying you aren´t coming back because of the ads….
you will be back! you are macfanboys and you need your macfanboy news and you need to tell everyone your opinion about what a smart macfanboy you all are.
S U C K E Rs!!!
Ha.ha.ha
If you don’t like the ads here then just go to Watchster.com and click on MacDailyNews’ hot link. It reads the same news but it seems to filter any ads.
Ads? What ads?