New York Attorney General investigates digital music pricing

By Derek Sooman on December 26, 2005, 6:49 AM
New York Attorney General Eliot Spitzer has subpoenaed the Warner Music Group on Friday, as part of an investigation into digital music pricing. Spitzer is attempting to uncover whether record labels conspired to set wholesale prices of digital downloads. Sony BMG has also been subpoenaed, with the same likely to follow for the EMI Group and Universal Music.

The price of wholesale digital music ranges from 60 cents to nearly 90 cents a song, sources told the Times. The songs are then sold to consumers on Web sites like Apple Computer Inc.`s iTunes for 99 cents each.

A statement released by Warner Music Group Friday said it received the subpoena Tuesday and was 'cooperating fully with the inquiry.'

User Comments: 8

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vigilante said:
All I know is, I hope they are serious, and I hope the outcome drives CD prices down. Those pour multimillionairs, what would they do with less income?
Bartzy said:
Record companies and RIAA are suing people every 2nd day, and do such things... I really hope they'll get sued. I know it's kinda harsh, but these companies are no better than people who download pirate products and music.
MonkeyMan said:
And this is what gives pirated software its drive. Pirating software has become one of the most heated debates ever. I have a feeling that you haven't seen the last of this yet. Love me baby love me!!!!!!! (If only there were a song like that that existed lol).
nathanskywalker said:
You know what, i think a lot of problems would at least be minimized if music companies started charging only $10 for cd's. Then seriously slamming any form of piracy.
asphix said:
I agree with everyone thats posted before.. its nice to see some solid moves being made against the driving forces within the music industry. They've been throwing their weight around way too long against us consumers.
Crofty74 said:
I reckon that proving conspiracy to set wholesale prices may be difficult, I see this much more of a warning shot, well aimed and well timed.
Rod_Massoudi said:
I smell collusion. However, needless to say the entertainment industry has been hit hard with piracy and its derivatives. Regardless, I really hope their is an honest outcome to this conflict.
mentaljedi said:
Piracy will always be around, however i know that the avegage person would be more inclined to buy CDs if there is acrackdown AND a lowering in CD prices.
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