Report: Sony BMG And Wal-Mart At Impasse

MP3's An Issue For Sony BMG?

SONY BMG and WAL-MART remain at an impasse over paid downloads, months after disagreements first surfaced, reports DIGITALMUSICNEWS.COM. Downloads from artists like ALICIA KEYS, SEAN KINGSTON and SARA BAREILLES are still "not available for download," according to checks this weekend. 

The gap follows a shift by the mega-retailer towards an MP3-only marketplace (NET NEWS 8/21/2007), a move that initially cause licensing delays with WARNER MUSIC GROUP and SONY BMG MUSIC ENTERTAINMENT.

WARNER resolved its licensing negotiations in early MAY, though SONY BMG remains on the sidelines. The company was unable to respond to an inquiry over the weekend, though industry executives have described a demand by the label to reverse the standard accounting relationship. Under the revised arrangement, SONY BMG would assume control over a download sale and its full, 99-cent revenue, and distribute a percentage back to the seller, in this case WAL-MART.

Whether that represents a show-stopper for WAL-MART remains unclear, and other disagreements may also be slowing progress.

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