updated 08:40 am EDT, Tue October 4, 2005
MS ends music talks
Microsoft has with the four global music companies, placing the company's plans to start a subscription-based music service on hold. The labels were reportedly seeking royalties of $6-$8 per user per month, similar to what other services currently pay for licensing fees. The Wall Street Journal reported that negotiations broke down Friday "over what Microsoft considered high royalty rates sought by EMI Group, Warner Music Group, Vivendi's Universal Music Group and Sony BMG. "Microsoft has not announced a subscription music service, but it was widely expected to make such an announcement soon," according to Reuters. The break in talks would indefinitely postpone a launch, according to the WSJ report; however, other reports have indicated that Microsoft has also been in talks to acquire a stake in Time Warner's AOL service, which has a music subscription plan.