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WSJ: Microsoft Ends Subscription Service Licensing Talks With Labels

Authored by Mark Hefflinger on October 4, 2005 - 3:15am.
New York - The Wall Street Journal reported on Tuesday that Microsoft cited high royalty rates as it ended talks with the major record labels towards licensing their songs for a digital music subscription service. Microsoft has not yet announced such a service, which would be similar to offerings from Napster, Yahoo and RealNetworks, but is expected to enter the market. The breakdown of licensing negotiations will likely indefinitely postpone a launch, The Journal reported, citing two people close to the situation. The labels were reportedly seeking $6 to $8 per month per user for access to their songs for a subscription service, which label sources said was standard; while Yahoo's subscription service costs $4.99 per month, Napster's and RealNetworks' are both around $15 per month.
http://tinyurl.com/77dor (Wall Street Journal)
http://biz.yahoo.com/ap/051004/microsoft_online_music.html?.v=5 (AP)
tags: Microsoft | WSJ | Subscription Service | Talks With Labels |



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