News
DOJ investigating digital music price fixing
Following a similar investigation by New York Attorney General Eliot Spitzer, the Department of Justice is now investigating the major music labels for possible anti-competitive pricing of digital music downloads.
“One music industry source said that some subpoenas may have been issued already in connection with the probe, while other labels had been tipped off that subpoenas would likely be coming in the next few days,” reports Reuters. “The two music industry sources said Thursday the DOJ’s probe appeared to be focused on the same issues—whether the labels colluded to set wholesale pricing for song downloads. The investigation also could be related to licensing renegotiations with Apple, maker of the wildly popular iPod digital music player, for its iTunes music store.”
Related Stories
- Apple in talks to acquire Pinterest rival The Fancy?
- Google intros Nexus 7, Nexus Q as iPad, Apple TV rivals
- Samsung releases app to ease iOS to Galaxy transition
- Apple, Time reach agreement on magazine sales
- Microsoft unveils Xbox SmartGlass; links console to iPad, iPhone
- New HTC handsets face import delay due to Apple
Comments
If you have a comment, news tip, advertising inquiry, or coverage request, a question about iPods/iPhones/iPad or accessories, or if you sell or market iPod/iPhone/iPad products or services, read iLounge's Comments + Questions policies before posting, and fully identify yourself if you do. We will delete comments containing advertising, astroturfing, trolling, personal attacks, offensive language, or other objectionable content, then ban and/or publicly identify violators.
Recent News
- iLounge Weekly arriving Monday, giveaway reminder
- Report: BBM iOS app won’t support iPad at launch
- Report: iRadio might miss WWDC debut
- Fair Labor Assoc.: Foxconn, Apple still exceed work hours
- CW to bring content to Apple TV
- Moshi debuts aluminum USB Cable with Lightning Connector
- Cook talks Apple’s taxes ahead of Senate testimony
- iLuv intros Aud 5 Lightning speaker dock for iPhone 5
- Apps: Can Knockdown 3, eBay 3.0/2.3, Jungle Book + Sonic the Hedgehog 2.0
- Apple releases iTunes 11.0.3 with new Mini Player
Recent Reviews
- BlueFlame 2M Charge and Sync Cable with Lightning Connector
- HMDX Jam Party Bluetooth Wireless Stereo Speaker
- Logitech Harmony Ultimate Universal Remote Control
- MyCharge Freedom 2000 Battery Case for iPhone 5
- Nike Nike+ FuelBand
- OCDesk OCDock for iPhone 5
- Bluelounge MiniDock (With Lightning Connector)
- Mophie Juice Pack Powerstation Pro
- PhoneSuit Flex Pocket Charger
- Olloclip Quick-Flip Case + Pro-Photo Adapter for iPhone 5
Recent Articles
- Remove old iCloud backup after restoring to a new iPhone
- Setting up a ringtone in iTunes
- Using a Wi-Fi hard drive with an iPad
- Backing up and restoring an iPod classic
- Can’t restore iPod touch without passcode
- Retaining older versions of Apps during an iOS Restore
- Can’t eject iPod nano without closing Firefox
- Can’t change iTunes Apple ID to iCloud e-mail address
- Effect of erasing an iPhone on the Find My iPhone feature
- Organizing video collections on an iPad
1
Oh, great. Just what we need, Elliot Spitzer and his continued preelection campaigning brand of vigialante “justice”. Don’t get me wrong, I am no music label fan, but Spitzer is a psycopath ever trolling for high profile populist “enemies” to beat up on, whether they are deserving or not.
Hate insurance companies? Call Elliot Spitzer. Hate stock firms? Call Spitzer. Are music labels the current public bad guys? Call Spitzer, he’ll trash ‘em.
Posted by Obadiah on March 3, 2006 at 12:54 PM (PST)
2
Well, finally someone can figure out why it’s cheaper to buy a newly release CD at Best Buy, Circuit City, or Wal-Mart than online. I’m gonna guess and say it costs more to manufacture and distribute CDs than place music files on a webstore.
Posted by kdogg on March 3, 2006 at 1:45 PM (PST)
3
It’s not just Spitzer; ALL state attorney generals are doing this. You can call it vigilantism, but what it really is a captive corporate cash cow. They really aren’t interested in consumer justice per se; they’re interested in corporate payouts under the guise of consumer justice. It scores brownie points with the constituency under this smokescreen, and benefits the respective state’s general fund as the money is siphoned from some token ‘magical’ reimbursement plan that not surprisingly is rarely implemented with any degree of seriousness by the states.
It’s happened in the past (as with the tobacco settlement), and it’ll continue to happen again and again when tax revenues in many states unable to cover bloated government costs. Corporations, especially those based in other states, will be continue to be the target of aggressive state AGs as long as they can smell the money.
As for CD cost vs. download cost; I don’t think that’s the crux of the investigation, but the record companies are fully justified in giving their loyal B&M retailers a better deal if they so choose. Besides, usually the cheapo price is only for an intro special or startup artist…the labels can offer cheap prices if they want to promote these releases, and can support the flagging CD sales of their traditional B&M retailers at the same time, particularly if they’re GUARANTEED that the retailer will buy a certain bulk quantity of CDs from them. With online download sales, there’s no such guarantee; each download from iTMS or Rhapsody is made and tallied one purchase at a time.
Posted by flatline response on March 3, 2006 at 7:01 PM (PST)
4
d7V8GISy4BFy FXh0WO9FZX9P X9VZ7A4t2HLe
Posted by UL56fmr31F on March 4, 2006 at 2:04 AM (PST)
5
flatline response -
You nailed it.
Posted by Obadiah on March 4, 2006 at 3:11 PM (PST)