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Report: Music talks end

4th Oct 2005, 21:09 GMT

The Wall Street Journal, citing unnamed sources, reports today that Microsoft has ended negotiations with the major music labels for a deal that would have resulted in a music subscription service from the company. Microsoft's MSN Music sevice offers music downloads but doesn't offer monthly music subscriptions. Ironically, competing services such as Yahoo's use Microsoft's digital-rights management technology. From the story: According to several people briefed on the matter, the labels, in separate negotiations, were seeking royalty payments from Microsoft that would have amounted to a total of $6 to $8 per user, per month. People close to the labels say that is roughly in line with what the existing competitors in the subscription-music business pay. Microsoft was seeking to pay less, in order to charge consumers what it considered a competitive price -- most likely about what Yahoo charges.

View full story at blog.seattlepi.nwsource.com

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