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Microsoft ends talks with major record labels

Written by James Delahunty (Google+) @ 04 Oct 2005 12:04 User comments (8)

Microsoft ends talks with major record labels Microsoft had been hoping to offer a music subscription service like those offered by Napster and Real Rhapsody. However, citing unnamed sources, The Wall Street Journal has reported that Microsoft ended licensing talks with the four major labels on Friday. According to the sources, the talks broke down because of what Microsoft considered high royalty rates being sought by the four major labels.
Music subscription "rental" services allow customers to store digital music tracks on Windows Media compatible devices as long as they pay their monthly rental fee. Microsoft hasn't announced the launch of as music rental service yet, but expectation was that the company would do so soon. Now according to the sources, the breakdown in talks will indefinitely postpone a launch of such a service.

According to those close to the situation, the labels were expecting royalty payments of $6 to $8 each per customer, per month. According to people close to the labels, a price like this would be in line with the other subscription services that exist. I guess you could understand Microsoft's frustration, when the monthly fee is set, most of it would be going to the labels whereas the service is up to Microsoft to provide.


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8 user comments

14.10.2005 12:49

The labels keep wanting more money and less overhead. They don't even do anything (besides sue people and rack up production and distribution costs) and they get the most money!

24.10.2005 14:11 least you can give Microsoft SOME credit in trying to not be a b**ch to the record labels. I for one, would do this...have Microsoft hold a news conference, and with all the press there, Bill Gates comes out and says. "In response to our talks of unsuccessfully providing a music service to our users, with the major record labels, we have since decided to cancel any and all music type services." And as he walks away....comes back to the podium and says: "...oh yes, and one more thing you greedy POS's! Why don't all of you recording labels play "hide and go f&$k yourselves!" Ah...yes...that would be SOME news announcement. Ok seriously...I am not one to even be bothered paying for music...I don't like 95% of the stuff out there anyways...but at least MS has enough balls to walk away, even if they wanted most of the positive revenue going back to them (MS). So, I say...go ahead and take the walk...cause it won't be long till all this crap is going to stop...may not happen this year, or next year, but eventually, it is going to be over and they will stop trying to be so DAMN greedy. :P

This message has been edited since its posting. Latest edit was made on 04 Oct 2005 @ 14:19

34.10.2005 15:55

They'll never stop trying, they'll just stop succeeding. The president of the RIAA will get it worst - he'll lock himself in a sock drawer and suck his thumb as he chants "money, money, money" remembering days when he could sue dead people to turn a profit.

44.10.2005 16:18

Maybe M$ should buy their own record label,and try to get popular artists to sign on...might work for Apple too...then they don't have to worry about the major labels 'cause they would be one. Complete control over everything.

54.10.2005 17:08

good idea. the record labels are worse than Apple and Microsoft combined.

64.10.2005 22:02

I'm thinking of starting my own label, taking as much money from the artists as I can, make them pay for their road tours, sue to keep innovation off the market, do everything in my power to P*** everyone off............ OH what that's already been done. Damn I wonder if that's been copyrighted?

75.10.2005 21:30

you know who is a bastard... bill gates.. am i right or am i right? that guy is suchh a bastard.. lol

86.10.2005 17:17


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