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Microsoft ends licensing talks with music labels

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.




by MacNN Staff

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  1. koolkid1976

    Joined: Dec 1969

    0

    Greedy Record Labels

    If they are too expensive for Microsoft--a company that often competes at a loss--then that's saying something.

  1. Ryukyu

    Joined: Dec 1969

    0

    AOL subscription plan

    Isn't AOL's music subscription plan iTunes?

  1. michaeljohn63

    Joined: Dec 1969

    0

    keep the beast at bay

    Apple folks must be happy to hear this. Even with an 80% marketshare, keeping MS out of the foray for as long as possible is a good thing for Apple. Remember when Navigator had 80% of the browser market, or Apple had 100% of the GUI OS market. If MS did have its own music store, you can bet your bottom dollar MS would build it into Windows at the core, so PC users would have to use herculean efforts to turn it off. This strategy works well for MS.

    On another note, I thought I read somewhere late last week that TimeWarner was rethinking whether to spin AOL out the door?

  1. Chopper3

    Joined: Dec 1969

    0

    When...

    ...Tesco and Woolworth beat you to market then perhaps you can assume that not only has the horse bolted but that the hinges have rusted too.

  1. koolkid1976

    Joined: Dec 1969

    0

    re:AOL subscription plan

    No.

    You can use your AOL id to buy songs through iTunes. That's probably what you are thinking of.

  1. hayesk

    Joined: Dec 1969

    0

    Ha ha.

    I'll bet Microsoft was trying to muscle their way to a better deal than the other subscription services so they can undercut them and force them out of the market. And then when the others are out of the market, they'd jack the price back up.

    For once, the greed of record companies was put to good use.

  1. MacNorway

    Joined: Dec 1969

    0

    Do your math on Yahoo

    yahoo's charging $5 a month on a yearly plan and $7 per month running... wonder what they pay when the labels are insisting M$ paying $6-8. I can understand Jobs staying out of that game, too.

  1. typoon

    Joined: Dec 1969

    0

    Greedy Labels

    Well it just goes to show how greedy the labels really are. The other guys are charging less so they figured that since MS was the new guy they's try to squeeze them. Well they squeezed too hard and LOST. I doubt this will help them to realize that people aren't going to pay more.

  1. tuscmat

    Joined: Dec 1969

    0

    MS gets a lesson

    This is interesting. Now, MS understands what Jobs is going through with those greedy little weasels in the music business.

  1. loudpedal

    Joined: Dec 1969

    0

    Waaaaaaaaaaaaaa!!!

    Ballmer: If you guys aren't going to play the way I want, I'm gonna take my ball and bat and go home.

    Record Companies: Uh, Steve, it isn't your ball to take.

    Ballmer: (tears welling up in his eyes) Well, then, I'm gonna go home.

    Record Companies: Bye.

    Fester is seen running away vowing revenge. Goes home and plots a "Microsoft Records" label startup company in his bedroom.

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