p2pnet - rss feed: DoJ probes Big Music downloads
p2p news / p2pnet: The US Department of Justice has followed New York attorney general Eliot Spitzer’s lead by opening an investigation into the prices the major record labels are charging for their lossy digital music files.
In the firing line are Warner Music Group, EMI Group Plc, Vivendi Universal’s Universal Music Group and Sony BMG, the members of the Organized Music cartel.
In 2004, the Big Four were ordered to pay $50 million to musicians they’d had under contract and more recently, Spitzer was looking into bribery charges. “Major artists, major songs were sent up the charts through improper payments to buy spins on the air that translated into sales,” his office said.
In this new federal investigation, “One music industry source said 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, says Reuters. “It appeared that Sony BMG had already received a subpoena, the second industry source said.”
Label capos weren’t available, “or declined to comment.”
The Big Four currently wholesale ‘product’ at between about 65 and 80 cents per download. This forces corporate music sites such as Apple’s iTunes to try to get $1 and more for each track.
Most music lovers are refusing to be ripped off in this way, instead using to the p2p networks and independent sites for their music fixes.
Sony BMG, et al, are, in turn, trying to sue their customers into buying downloads.
Also See:
bribery charges - 9 radio stations in bribery probe, February 9, 2006
Reuters - DOJ opens probe into online music pricing: sources, March 3, 2006
March 3rd, 2006 at 10:28 pm
Instead of having a reassuring feel to it, I am left uneasy and filled with doubts and ephemeral paranoia by the fact that Gonzales’ DoJ is going to investigate one of the biggest cash cows to frequent the United States Senate in a very long time. Have they been shamed into this action by the New York prosecutor? Or is it something more sinister?
I recently read an editorial by a Member of Congress who complained that beating the bushes for campaign funds is now a full time job. I scoffed at the idea, thinking of the palms that have been crossed with Entertainment Cartel and Software Company gold. But perhaps, the tide has turned and the billionaires’ club members are beginning to retract the pocket stuffers in anticipation of a rainy day.