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May 17, 2008 1:12:00 AM CDT

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Labels Want to Beat iTunes but Feds Say, Slow Down  

Posted Feb 8, 08 12:34 PM CST in Business,  Technology    Most Covered

(newser) – The latest music industry initiative to beat iTunes, Universal’s Total Music plan, is facing a Justice Department inquiry before it’s even out of the concept stage. Universal and Sony have gotten DOJ letters of inquiry, reports the Wall Street Journal. It’s uncertain what aspect of Total Music concerns the DOJ, but competitors cooperating to set prices could raise issues.

Total Music would offer unlimited access to a large catalog of songs, possibly as part of a service bundled into the price of compatible portable music players. Universal proposed the idea to the other “big four” music companies and Sony reportedly showed the most interest. Warner and EMI said the Department of Justice hasn’t contacted them.

Source Wall Street Journal

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Labels Want to Beat iTunes but Feds Say, Slow Down
The Robert F. Kennedy Department of Justice Building, Washington, D.C. The Justice Department has already begun inquiries into a new method of selling music online.   (Public Domain)
Labels Want to Beat iTunes but Feds Say, Slow Down
It was unclear which aspect of the process the Justice Department was investigating, but competing suppliers cooperating to set prices could violate antitrust laws.   (Shutterstock.com)
Labels Want to Beat iTunes but Feds Say, Slow Down
Universal and Sony BMG Music Entertainment, top two music companies world-wide by market share, have received preemptive letters of inquiry from the Justice Department in regards to the new method of...   (Sony BMG; Universal Music Group)
Labels Want to Beat iTunes but Feds Say, Slow Down
The proposed service, currently known as Total Music would provide online or wireless delivery for a flat fee.   (Shutterstock.com)
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music industry  • music downloads  • antitrust  • MP3s  • Total Music


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