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.'

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