Spitzer Probing Labels Over Pricing Of Digital Downloads
December 27, 2005 at 6:25 AM (PT)
The LOS ANGELES TIMES' CHARLE DUHIGG (12/23) is reporting that both WARNER MUSIC and SONY BMG are confirming that they've received subpoenas from NEW YORK STATE Attorney General ELIOT SPITZER, who is investigating the pricing of digital downloads and whether the companies conspired to set wholesale prices.
Current wholesale digital music prices can range from 60 cents to nearly 90 cents a song, while iTUNES then sells song to consumers for 99-cents a download.
WARNER spokesman WILL TANOUS told the L.A. TIMES: "As part of an industrywide investigation concerning pricing of digital music downloads, we received a subpoena from Atty. Gen. SPITZER's office as disclosed in our public filings. We are cooperating fully with the inquiry." SONY also indicated it was cooperating. The article said that "EMI GROUP and UNIVERSAL MUSIC either had received or soon would receive subpoenas."