Music Download Pricing Lawsuits Pending? 176
larry bagina writes "New York Attorney General Eliot Spitzer has subpoenaed Warner Music Group, apparently looking into allegations of price fixing with Sony/BMG, EMI, and Vivendi, and apparently more subpoenas are in the pipeline. 'As part of an industrywide investigation concerning pricing of digital music downloads, we received a subpoena from Atty. Gen. Spitzer's office as disclosed in our public filings. We are cooperating fully with the inquiry.'"
This holiday season ... (Score:5, Informative)
EFF useful? (Score:2)
I thought the Electronic Frontier Foundation had outlived its usefulness [slashdot.org].
Re:EFF useful? (Score:2)
who'd have thunk it? (Score:5, Insightful)
Who'd have thunk it, the music industry being crooked? So, who are the pirates now?
It does seem maybe these (alleged) crooks may be losing their grip on the industry: getting caught with their hand in the pricing cookie jar, and potential other investigations into payola (the other way they control the flow and exposure to music/artists).
Disclaimer: I know, innocent until proven guilty, but with the propensity and willingness of these (alleged) crooks to string up the customer like so many Christmas (Merry!) lights, publicly indicting/convicting consumers before trial. How's the shoe feel on the other foot? Maybe there really is a Santa Claus(e)!
Re:who'd have thunk it? (Score:3, Informative)
"Alleged murder" is not a crime. "Murder" is.
One of the main reasons we (as a society) go along with the fiction of "innocent until proven guilty" is to avoid prejudicing the potential jury pool.
Anyways, those two linked articles are very light on details.
Re:who'd have thunk it? (Score:2)
"Alleged murder" isn't exactly a crime, but alleged "murder" certainly is.
No, it's because our justice system requires proof to be establish in court, as opposed to being assumed before
Re:who'd have thunk it? (Score:2, Troll)
Re:who'd have thunk it? (Score:2, Insightful)
Who'd have thunk of this interesting development? (Score:3, Insightful)
This is what we have said all along: "Reasonably priced (according to cost, not to traditional prices and unencumbered by nasty DRM schemes, we are willing to pay for music"
If this indictment goes forward, it might give honest distributors the occasion to prove the point. The cost of downloading a song on the Internet is pennies. Even considering a decent profit, a reasonable pricing will do wonders to discourage pirating. The value is there for the consumer and the business model is simp
Re:Who'd have thunk of this interesting developmen (Score:3, Informative)
but the cost of processing the transaction is not nearly as cheap. Google for terms such as micropayment and you'll see what I mean. This is one of the biggest challanges to cheaper pricing in general.
Re:Who'd have thunk of this interesting developmen (Score:2)
Re:Who'd have thunk of this interesting developmen (Score:3, Insightful)
Re:Who'd have thunk of this interesting developmen (Score:2)
Re:who'd have thunk it? (Score:2)
IANALY (I am not a lawyer yet)
Re:who'd have thunk it? (Score:2)
Usefulness of Recording and Distribution Organizat (Score:2, Insightful)
Because recording and distribution has now been commoditized by the internet, there is no need for a "Recording and Distribution" specialized commercial function between the music artists and their fans and customers.
Don't you think that the recording industry sees that reality, and when anything is fighting for it's life, like the music Recording Industry is, there are "no hold
Re:who'd have thunk it? (Score:2)
Re: (Score:2)
Re:The New York AG? (Score:5, Informative)
Sure he does. So long as ONE person in his state has been victimized by RIAA price fixing.
Re:The New York AG? (Score:2, Insightful)
Re:The New York AG? (Score:2)
Re:The New York AG? (Score:5, Informative)
Re:The New York AG? (Score:5, Funny)
Spitzer has been doing this for a while now (Score:3, Informative)
Re:The New York AG? (Score:2)
NYTimes Article With Additional Details (Score:4, Informative)
Pricing of Downloaded Songs Prompts Antitrust Subpoenas [nytimes.com]
Re:NYTimes Article With Additional Details (Score:5, Informative)
I'm not sure why both the nytimes and the latimes bring up Apple & iTunes unless they're trying to suggest that the music companies are being investigated for colluding on the (future) wholesale prices of tracks they'd like Apple to sell. A Different Article [betanews.com]
I wonder if those music studios have industrial strength paper shredders or full fledged burn rooms at their corporate headquarters?
I've got karma to burn... (Score:5, Funny)
Dear recording industry: Ha! Merry Fucking Christmas, motherfuckers!
Re:I've got karma to burn... (Score:5, Funny)
Dear recording industry: Ha! Merry Fucking Christmas, motherfuckers!
Posting such a controversial stance to Slashdot is admirable. I hope your Karma doesn't suffer from all the pro-RIAA moderators here
Re:I've got karma to burn... (Score:2, Informative)
Posting such a controversial stance to Slashdot is admirable. I hope your Karma doesn't suffer from all the pro-RIAA moderators here
it was sarcasm...
Re:I've got karma to burn... (Score:5, Funny)
Not all of us celebrate the same way you do. Next time please say "Merry Fucking Holiday, motherfuckers!"
Thank you.
Ironic (Score:2)
Re:Ironic (Score:2)
Re:I've got karma to burn...Ha Ha on You! (Score:2)
Ha ha, the joke's on you!! Funny +5 doesn't affect your karma at all!!
Well, there is price fixing . . . (Score:4, Interesting)
Re:Well, there is price fixing . . . (Score:5, Informative)
Re:Well, there is price fixing . . . (Score:2)
Ah yes, bad for consumers. What's funny, I think, is that in places where there are no price fixing laws, the whole thing goes out the window.
Anyone ever wonder why Japan's no longer the leader in CPU manufacture? They all price fixed in the late 80's/early 90's and dumped their chips on the market in an effort to kill the American competition.
What ended up happening is they ran out of money, raised the prices expecting high returns, and w
Re:Well, there is price fixing . . . (Score:2)
However, I suspect that you have a good point about price fixing ultimately driving the colluding businesses out of business. The recording industry has been in a slump that predates the p2p phenomenon. They've been under increasing pressure not so much from p2p but from competing forms of entertainment (and thus disposable income). Video games comes to mind. I suspect that the grow
Re:Well, there is price fixing . . . (Score:2)
What's going to be interesting is how the logic plays out on this. Initially, the labels don't appear to have colluded - Apple went to them. Apple can state what wholesale price they will accept will be - retailers do this all the time - especially WalMart. Since there effectively was no wholesale price for music - yes, some smaller labels, etc. then the iTMS price wasn't so much collusion as reaction to the only standard put forwar
Re:Well, there is price fixing . . . (Score:2)
You've hit the nail on the head. I believe Bronfman, head of Warner, has already intimated that Apple would have to submit or risk the big players in the recording industry shutting them out.
The other place is ringtone pricing which I understand labels have a different unified wholesale price for. Since these are essentially the same product in slightly different contexts, it cou
Re:Well, there is price fixing . . . (Score:2)
Re:Well, there is price fixing . . . (Score:2)
Also, I think crimguy needs to do a little research in an area of law which is obviously outside his area of expertise. The idea that a single entity can collude on anything by itself is ridiculous. The idea that Apple has had negotiations with other online music vendors to set prices is also ridiculous. There is not even a whisper that Apple has done this. If anything, Apple has been criticized by other vendors who think the pric
Re:Well, there is price fixing . . . (Score:2)
Apple's success is not called price fixing, any more than the iPod's success SET the price for all competitive mp3 players; too expensive, and you aren't competitive. Too ch
Re:Well, there is price fixing . . . (Score:4, Interesting)
If they get together, say so, agree on a price structure and then find ways to exclude competitors, they have committed a crime. This is what price fixing and anti-competitive practices are all about. Everyone pays so a select few can profit. Artists and others who would make a living in the industry pay more than anyone else.
It's obvious that such a crime has been and continues to be committed. The cost of an electronic copy of costs more than the same with delivered by physical media. In a free market music can be had for a song. Those that would compete are locked out of traditional broadcast and physical distribution. They are also harassed at every point possible by lawsuits and bogus laws which make operations difficult and expensive. The world's three big music publishers seek to impose all the restrictions of physical media and 100 year old broadcast technology law onto the internet because they won't exist without them. The ultimate crime are laws seeking to "close the analog hole". It's nice to see some of the smaller crimes looked into, but a review of "price fixing" misses the big picture.
Spitzer might be working for them this time.
That depends on how deep he goes.
Man I'll miss Spitzer when he becomes gov(NY)... (Score:5, Insightful)
My views on him are mixed. (Score:5, Insightful)
Re:Man I'll miss Spitzer when he becomes gov(NY).. (Score:4, Informative)
Don't get me wrong - I hate abuses by large corporations, and I think he has done many good things to protect consumers. But he has a large ego, and doesn't know when to quit. I think he was hoping AIG was the next Enron, and when it turned out it wasn't even close, he got vicious and couldn't let it go, despite the fact he is hurting a lot of innocent people in the process. Of course, I am a bit biased, since I personally know some of the people whose careers he has ruined and finances he has messed up.
He's better than many, but he ain't no saint.
Re:Man I'll miss Spitzer when he becomes gov(NY).. (Score:3, Insightful)
Hey dumbass, that's TWO BILLION DOLLARS.
I know if I was a shareholder of AIG I would be rightfully pissed.
Lying about the worth of the company is one step away from actually stealing two billion dollars.
I think he was hoping AIG was the next Enron, and when it turned out it wasn't e
Spitzer is a loose cannon (Score:3, Informative)
Last April, The Wall Street Journal published an op-ed piece by me titled "Mr. Spitzer Has Gone Too Far." In it I expressed my belief that in America, everyone -- including Hank Greenberg -- is innocent until proven guilty. "Something has gone seriously awry," I wrote, "when a state attorney general can go on television and charge one of America's best CEOs and most generous phil
Re:Man I'll miss Spitzer when he becomes gov(NY).. (Score:3, Interesting)
The music companies claim they are trying to help the consumers. Forced to pick between them and itunes (who released an honestly useful app with reasonable DRM) I'd pick apple in a heartbeat.
Re:He is an asshole working only for himself (Score:2)
Oh yeah, look to The Wall Street Journal to tell us the truth when it comes to Consumer rights, after all they the number one Consumer advocate (wink)...
price fixing? (Score:3, Informative)
Self-interests? (Score:3, Funny)
BTW, I got to open one of my Xmas presents early. The wife and kids made me a brand new tin-foil hat.
I don't believe in music downloads (Score:5, Funny)
ID at work (Score:3, Funny)
Re:I don't believe in music downloads (Score:2)
Ever heard of "Make a joyful noise unto the Lord, all ye lands?"
If you're going to be a Bible troll, at least get your facts straight.
FTC Site (Score:2, Interesting)
According to the FTC complaint detailing the charges, in 1997, Warner and PolyGram (predecessor to Vivendi Universal), two of the largest music distribution companies in the world, formed a joint venture to distribute compact discs, cassettes, videocassettes, and videodiscs to be derived from the next public performance of The Three Tenors. Warner would distribute the 1998 releases in the United States, and PolyGram would distribute the 1998 releases outside of the United States. As the concert da
Like that other time they got caught price fixing? (Score:5, Insightful)
Re:Like that other time they got caught price fixi (Score:2)
Re:Like that other time they got caught price fixi (Score:3, Informative)
Right; that judgement was a win for Wal-Mart and Best Buy. Wal-Mart and Best Buy went to the government when Universal was handing out program money (funds for newspaper advertisements and the like) to Tower Records and TWE in return for setting MAPs (minimum advertised prices). The only result was that the record companies ended their MAP programs. You only theoretically saved money if you'd bought CDs at Tower Records.
Many Slashdotters are under the impression that the price fixing settlement was a w
Who does he really work for.. (Score:3, Insightful)
Re:Who does he really work for.. (Score:2)
Spitzer works for himself. When he started his crusading, it seemed like he was a beacon of light for the consumer, but it's pretty clear that his political ambitions are the driving force behind his actions now.
-h-
Re:Who does he really work for.. (Score:4, Insightful)
If Spitzer is doing this for his own good, for the good of the consumers, or just because he felt like suing someone, he is doing a good thing.
Re:Who does he really work for.. (Score:2)
Ahh, but you should care - Spitzer has also left a nasty trail of ruined careers and financial losses in some of his misguided crusades. The ends don't justify the means - if they did, then nobody on
-h-
and all I got was a coupon (Score:2)
Wow... wow... wow.. (Score:3, Insightful)
Is it just me, or we have waaay too much lawsuits going on here. I mean, lawsuits are supposed to be the exception, and the regulator is supposed to be the law with the help of a possibility for lawsuit.
Today, we just have a bunch of lawsuits from people raping the system, and no benefits. For how long can the system sustain this?
You know this is millions of people giving part of their wage for lawyer/lawsuit expenses. You have to work more and get less, so that all those lawsuits can happen. Directly or indirectly.
God damn it everything is so wrong.
**head explodes**
Re:Wow... wow... wow.. (Score:3, Interesting)
The problem is, lawsuits are a financially better alternative than following the rules for everyone but the consumer.
Until penalties for breaking the rules are made worse than the cost of a lawsuit, companies will break the rules - they look at fines as the price of getting to break the law. Engage in any unethical and illegal behavior you want - make a billion dollars, get fined at most a few million.
And then we have class action lawsuits. Id
The real price should be 0 (Score:2, Interesting)
Re:The real price should be 0 (Score:2)
What do you think the music industry is providing? Services of course! They artist write and perform. The studios record. The labels distribute. The point is that there is no product. Entertainment is solely a service. This is why the cost is so low. There are fixed costs, like equipment to buy, and training to be had, but the variables costs tend to be very low
So the question is how muc
Re:The real price should be 0 (Score:2)
Re:The real price should be 0 (Score:2)
Sociologists have been talking about for a while how how we are/have shifted from the industrial age to the information age, and that we are going away from "goods" to "services". Goods are automated. Services provide the distribution of the goods along with the distribution of information.
The only strange thing about all of this, is h
Silver and Gold (side topic) (Score:3, Insightful)
Money is no longer real. Its simply printed and/or blipped on computers. It is not backed by gold or silver like it used to be. The money holders (banks) hold less and charge people for giving it away (service) and they don't even own anything besides nice buildings (although that is changing). Its pretty much a crime to own a decent amount of cash money for some reason.
You know, I was reading that just as I was thinking if there was ever a kind of way that I could give a christmas present to people I do
Yeah, perfect way to solve the problem.. hah...er. (Score:4, Funny)
Seriously, the only way our problems with the recording industry are going to be solved is if they change their business model to reflect the 21st century. Until then, it'll just be the same old shit over and over again. Our legal system is warped beyond belief, so it's not going to help anyone here.
It's all fun and games... (Score:3, Interesting)
I wonder why, considering we have more than one state, that it's always New York taking the lead to try and give consumers an even break? He went after the mutual fund timing trades, record company payolla, and now more record company misbehavior. California also went after Edward Jones. California and New York the only states sticking up for consumers instead of standing by and watching consumers get the sticking.
Re:It's all fun and games... (Score:4, Insightful)
Just a theory.
Re:It's all fun and games... (Score:2)
Pure coincidence that those are the two largest and most firmly in the "blue" (Democrat) states in the US?
[Not trolling, just the facts.]
Eliot Spitzer... (Score:2)
I've said it before, and I'll say it again. (Score:4, Insightful)
I don't buy music anymore.
I can live without it -- the real question is, can they live without my money? The answer to that one is probably also "yes", but that's okay. I'm not out to destroy them, I just don't want to be a supporter of their industry anymore.
Re:I've said it before, and I'll say it again. (Score:2, Interesting)
Personally, I can't get enough new music. Most of it is independent (which is great), but many of them end up signing with larger labels that I must purchase from. The music industry is not going to change their ways with a few abstaining "informed citizens" (what a novel idea). The problem is, the music industry needs to shave off the top few layers of the money pyramid. Then
I feel like singing!! (Score:3, Funny)
For a show called, "10 types of people"
Start spreading the news.
I'm leaving today!
I want to be a part of it,
New York, New York!
I want to wake up
In a city that doesn't sleep!
I'm a consumer with rights
I want my fair price!
And no price fix-iiing!
No DRM crap
For me in New York
I really love that Eliot
Spitzer, Spitzer!
Oh Mr. Spitzer,
Please remove that Sony Rootkit!
And give my music to ME
Without some greedy
Hollywood scheeeeeme!
In Manhattan and Queens
And Bronx if I dare
My iPod has cheap music
Bought in New York
We told that Warner
To stop screwing the litttttle guy!
"You have to set a fair price!
No fixing or die,"
Said Spitzer, Amen!
Eliot Spitzer
We love you so much
New York is fair and balanced
Because of yooooou!
We want to thank you
For protecting consumer rights
We really love you a lot
In-a straight kinda way
We're really not gay!
Unofficial translation (Score:5, Funny)
Re:Unofficial translation (Score:2, Funny)
Why pricefix? (Score:2)
Media companies are fixing prices? (Score:2)
*yawn*. nothing to see here but the consumer getting screwed yet again.
Liking (Score:2)
I'm really liking this guy!
Hypocrisy! (Score:3, Insightful)
And what happens when higher prices cause less people to download from pay sites? The music industry claims that every download is a lost sale. So is this intended to create more lost sales? If you can't get your fully inflated price, then you won't take any price? That kind of thinking only made sense when you actually did mostly control the only source of supply. Then along came the cassette deck recorder and your lives have never been the same since.
People are obviously stupid in so much as they continue to support the music industry at its present prices (I remember when CDs first came out the promise was that as manufacturing efficiencies increased that prices would actually drop significantly), but even stupid people reach a point where they know they're being ripped off -- and don't like it!
Re:Spitzer is looking for publicity (Score:2, Insightful)
Re:Spitzer is looking for publicity (Score:4, Informative)
Re:Spitzer is looking for publicity (Score:2, Interesting)
Re:why warner (Score:5, Informative)
Re:why warner (Score:5, Interesting)
So they decided not to advertise about previous releases?Well,dont many companies do this?Only here,seems both of them decided together.& what competition are they talking about,when they own the rights.?
1. Had there been actual competition, instead of a oligopoly of a few major labels, a decision to market older products less wouldn't have given the Three Tenors any competitive advantage, seeing as how 100 other record labels wouldn't hold back on the promotion.
2. The record companies screwed all other artists that weren't the Three Tenors.
3. Copyright is a (prohibition) right granted under the theory that allowing creators to benefit of their works stimulated them to make more works. If artists didn't get properly compensated, the reasoning goes, we would all be stuck with the same old tripe. In this case, the record companies clearly intended to delude the consumer into thinking, yes, the same old Three Tenor tripe is all that's out there to buy.
4. Pooling two companies' promotion clout allowed them to come on top of the Three Tenor deal. Had they not colluded, they would have taken a loss, to the benefit of their competitors, and the market (the invisible hand should smack down on crappy business, should it not). Competitors that (hypothetically) would play fair wouldn't be able to recoup bad investments in the same way, they'd be SOL - cf. Standard Oil's pricedumping.
So, they screwed the artists, the consumers, competitors, and the Constitution. Not a bad run.
Re:why warner (Score:2)
Cut one from the herd and pursuade them that if they cooperate that the
Not too different than suing a few thousand filesharers in order to pursuade a few million others to settle.
Re:why warner (Score:2)
One hand washing the other... (Score:3, Insightful)
This kind of after-the-fact bandaid on a few of the worst excesses of government interference in the market is hardly proof that the government needs to
Re:Let them sort it out (Score:3, Interesting)
Hope you understand why governement involvement is needed.
I am not one of the people to whom you refer, but your statement is kind of stupid, and so I object merely on anti-stupid grounds. These corporations have their power because government gave it to them: both copyright and corporate existence itself are legal fabrications imposed on the free market by the government. If we t
Re:A Genuine Question... (Score:2)
But maybe you were asking why we endorse the idea of a free market? Price fixing comes in two forms, very crudely: communism and corporate fascism. Which are you suggesting we adopt in place of the (difficult) effort to maintain a free market in the music business and elsewhere?
Re:A Genuine Question... (Score:3, Informative)
If you are company A, you can set any price at all you like for the widgets that you sell. However, if you price too high, you won't sell any widgets, thus you won't make any profit. The market place is where we determine what is the optimum price for your widgets: How much people are willing to pay vs. how much you want to charge. Of course, you are also competin
Re:A Genuine Question... (Score:2, Informative)
But when there are limited players (a small handful of sellers, like in the record industry) and they collude to set their prices higher, that's illegal -- and it breaks the marketplace.
Of course, what ultimately fixes the whole situation is better competition, and that's coming. Musicians don't really need traditional publishing and distribution anymor
Re:A Genuine Question... (Score:2)
"Musicians don't really need traditional publishing and distribution anymore. Once the practice of developing a fanbase and breaking bigtime really takes off, the dinosaurs will die. And they know it, btw."
The first part of your post was dead-on accurate, but you lost me on the last part. You see, folks have been saying (in so many words) "The record companies are going to be gone once musicians start using this Internet thing to their advantage" for more than five years now. It was a popular rallying
Re:A Genuine Question... (Score:2)
If they all sent their reps into a room, and walked out with a gentleman's agreement to keep consoles at $1000, and games at $150, so that the customers had no choice (in terms of price) if they wanted to buy a console system, then yes, that's price fixing.
Same as if the 3 grocery stores in your area "leaked" pricing flyers to each other to ensure that their pri