Labels Inflating Music Subscription Prices?

Iria · Jan 13, 2006, 10:39 PM

Digital music industry officials are complaining that the record industry's alleged collusion extends into the subscription business as well, the Wall Street Journal reported on Thursday. According to industry insiders, the record companies are using "most favored nation" clauses in contracts to keep prices artificially high.

The clauses would allow another label to benefit from better licensing terms if a competing label renegotiates with a digital music provider. However, since the terms appear in just about every contract these providers have negotiated, it has the net effect of increasing the cost to procure music for these services.
__________
Read More / Source: BetaNews

Jan 13, 2006, 10:39 PM	#1
Iria DriverHeaven Extreme Member Join Date: Apr 2004 Posts: 7,275 Rep Power: 89	Labels Inflating Music Subscription Prices? Digital music industry officials are complaining that the record industry's alleged collusion extends into the subscription business as well, the Wall Street Journal reported on Thursday. According to industry insiders, the record companies are using "most favored nation" clauses in contracts to keep prices artificially high. The clauses would allow another label to benefit from better licensing terms if a competing label renegotiates with a digital music provider. However, since the terms appear in just about every contract these providers have negotiated, it has the net effect of increasing the cost to procure music for these services. __________ Read More / Source: BetaNews