Investigation into Online Music Price Fixing?
MSNBC reports that the U.S. Justice Department has launched an inquiry into possible price fixing in online music download industry.
According to the article, the Justice Department has already issued two subpoenas with more in the works. A spokesperson for the Justice Department commented on their actions:
While details are scarce, the investigation may somehow be connected to Apple's re-negotiations with the record industry. Apple's previous terms with the record labels reportedly run out in "early 2006".
According to the article, the Justice Department has already issued two subpoenas with more in the works. A spokesperson for the Justice Department commented on their actions:
"The antitrust division is looking at the possibility of anticompetitive practices in the music download industry"
While details are scarce, the investigation may somehow be connected to Apple's re-negotiations with the record industry. Apple's previous terms with the record labels reportedly run out in "early 2006".
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78 months ago
Heh. Don't mess with 'The Steve'
Steve recently made reference to the 'greed' of the music labels, now there's this lawsuit. Coincidence? I think not.
Steve recently made reference to the 'greed' of the music labels, now there's this lawsuit. Coincidence? I think not.
78 months ago
The same should go for normal CD's too, why should I pay $19 for one CD and $12 for another with the same amount of songs.
78 months ago
its all about making money. thats all people care about anymore.
greed. i hate it.
greed. i hate it.
78 months ago
This shouldn't really come as a surprise - something like this was bound to happen. It will be interesting to see how Apple responds to this, especially since they're no doubt very busy right now talking to the movie studios about how to set up the pricing for the iTunes Movie Store. :D ;)
78 months ago
The same should go for normal CD's too, why should I pay $19 for one CD and $12 for another with the same amount of songs.
Because one CD has more popular music. Greater demand == greater price.
The important issue here is that you'd occasionally expect to see a music label release a CD at $5 or something to undercut the competition, but you don't. The investigation is to see if the major labels are conspiring together to offer the same price to digital vendors instead of competing legally by trying to offer the best prices.
78 months ago
The same should go for normal CD's too, why should I pay $19 for one CD and $12 for another with the same amount of songs.
No, you see, that's because there isnt price fixing, that's the competitive marketplace. One product thinks they can get more for the goods, so at the higher price it either sells (they were right) or it doesn't sell, or they drop the price.If there was price fixing, you'd be paying $19 for each.
I can't see where Apple will be slapped here, since they are the ones bucking the industry's desire to raise the price per song.
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