Major Labels Under Antitrust Investigation

from the yet-again dept

Apparently the Justice Department is suddenly worried that the four major record labels are colluding in creating a new online music subscription service. The last time this happened was back when the record labels tried to (wait, this sounds familiar) create online music subscription services -- which were universally panned, rarely used and eventually shut down. So, even if the labels are colluding, given their strategic vision, it seems rather unlikely that they're going to leverage their position to dominate the market. They certainly could hold back other services -- but it seems like they've been doing that for years already, just with their own shortsightedness.
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Filed Under: antitrust, collusion, justice department, labels, riaa, subscription service
Companies: riaa


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  1. identicon
    Chronno S. Trigger, 7 Feb 2008 @ 1:39pm

    WTF?

    I may be reading the attached article wrong but I believe it's saying that the record industry is trying to offer a subscription bast system that will allow people to download all the music they want for $5. This 5$ can be subsidized by the ISP or the device manufacturer. Due to this idea they are now under an anti-trust investigation. Why? They want to offer a service that is what people want (No details on these restrictions) at a price they would pay or even not have to pay depending on how they get it. Why is this such a bad thing?

    "The subscription model is the only way to save the music business," Rubin has said. "If music is easily available at a price of five or six dollars a month, then nobody will steal it."

    Sounds like someone got the idea finally.

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