|
Music industry online pricing probed by Justice Department
By Aimee Picchi and Robert Schmidt
Bloomberg News
Published March 3, 2006, 3:51 PM CST
Music companies are the subject of a U.S. Justice Department probe of
possible collusion in the setting of prices for online downloading.
Gina Talamona, a spokeswoman for the Justice Department in Washington,
confirmed the investigation today and declined to specify which music
companies have been contacted by the department.
The probe heightens the pressure on the music industry since New York
Attorney General Eliot Spitzer began looking at digital- music price setting
last year. The music companies are turning to online sales, which more than
tripled last year to $1.1 billion, after a slump in demand for compact
discs.
Cory Shields, a spokesman for New York-based Sony BMG Entertainment, and
Peter Lofrumento at Universal Music Group weren't immediately available for
comment. Amanda Conroy, spokeswoman for London-based EMI Group Plc, and Will
Tanous at New York-based Warner Music Group declined to comment.
Downloads accounted for 60 percent of digital sales, while ring tones and
songs for mobile phones contributed 40 percent, the London-based
International Federation of the Phonographic Industry said in January. Apple
Computer Inc., the maker of the iPod music player, said on Feb. 23 that it
had sold its 1 billionth song online.
The Justice Department investigation was earlier reported in the Wall Street
Journal and the New York Times.
--With reporting by Charles Goldsmith in London.
|
|
