According to sources close to the talks, it appears the U.S. Justice Department has been looking into whether Apple “unfairly dominates” the digital music market with its popular iTunes store.
The sources say the Justice Department has been contacting music labels and other digital music providers, asking broad questions about the nature of the market in general, and Apple’s role in it.
The new inquiries may have been stemmed by accusations in March that Apple was using its giant market share lead to prevent rival Amazon MP3 from debuting new songs exclusively before they hit iTunes a day or two later.
The iTunes store currently has about 70 percent market share, with Amazon trailing at around 9 percent.
Global music sales have fallen from $26.5 billion at the start of the decade to just $17 billion last year, even as digital music sales have exploded.
Result for: global music
According to sources close to the talks, it appears the U.S. Justice Department has been looking into whether Apple “unfairly dominates” the digital music market with its popular iTunes store.
The sources say the Justice Department has been contacting music labels and other digital music providers, asking broad questions about the nature of the market in general, and Apple’s role in it.
The new inquiries may have been stemmed by accusations in March that Apple was using its giant market share lead to prevent rival Amazon MP3 from debuting new songs exclusively before they hit iTunes a day or two later.
The iTunes store currently has about 70 percent market share, with Amazon trailing at around 9 percent.
Global music sales have fallen from $26.5 billion at the start of the decade to just $17 billion last year, even as digital music sales have exploded.
Result for: global music
Virgin Media, the large cable TV operator and music store chain has announced an unlimited music download subscription service with Universal today, designed to allow all Virgin broadband users in the UK to stream or download as many Universal songs as they want, for a fee.
Of course, entertainment lawyers say the service will do nothing to stop global music piracy, which can amount to “millions in lost revenue” every year for the major labels. Many added that the 25 and under segment of the population will continue to pirate music, while this service may bring in user over the age of 30, who are less prone to unauthorized downloads.
Universal, the biggest major label in the world, includes such popular acts as U2, Elton John, the Rolling Stones, Duffy, Kanye West and Akon.
Virgin adds it remains in talks with other labels in an effort to bring more artists into the service.
The downloadable songs will be in DRM-free MP3 and will be available “later” this year.
IFPI Chairman John Kennedy adds of the deal: “It epitomizes the way in which the music business is adapting to the digital world, embracing new business models and responding to the changing needs of consumers,” Kennedy said of the new service.
“It also marks new ground in ISPs’ willingness to take steps to protect copyrighted content on their networks, and that sets a very encouraging example to the whole industry.”
Virgin also added: “We expect the deal will drive a material reduction in the unauthorized distribution of its repertoire across Virgin Media’s network.”
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