Feeds

MS 'quits' music licensing talks

Major labels' royalties too high, apparently

Intelligent flash storage arrays

Microsoft could be the first victim of the major record labels' attempts to force up digital music prices.

According to a Wall Street Journal report today, the software giant last week pulled out of content licensing talks with all four major recording companies: EMI, Universal, Warner and Sony-BMG.

The paper's unnamed sources claimed that Microsoft had stepped away from the negotiating table because the labels were seeking to impose royalty rates it considered to be too high. Curiously, the sources allege the labels wanted $6-8 per user, per month, essentially what existing subscription services already pay.

Microsoft has been expected to begin offering a music subscription service alongside those already offered by the likes of Napster, Yahoo!, Virgin Digital, HMV and others. According to the WSJ sources, now that licensing talks are over, the service won't be launched. That's undoubtedly good news for the aforementioned music services, all of who have based their offerings on Microsoft technology and would suddenly find themselves competing head-to-head with the company.

The news comes as Apple faces increasing pressure from the labels to put up its prices for new content and to adopt a differential pricing model that would see older, less popular songs fall in price. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Arab States make play for greater government control of the internet
Nerds told to get lost in last-minute power grab bid at UN meeting
Zippy one-liners, broken promises: Doctor Who on the Orient Express
Series finally hits stride, but Clara's U-turn is baffling
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
Apple SILENCES Bose, YANKS headphones from stores
The, er, Beats go on after noise-cancelling spat
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.