Sony Music, EMI Not Convinced on Unlimited Download Model

Authored by Mark Hefflinger on September 10, 2009 - 11:27am.

London - Major record labels EMI and Sony (NYSE: SNE) Music have expressed doubt about the unlimited song download service model, arguing that it may in effect cannibalize existing sales, instead of woo non-paying file-swappers to a legal service, New Media Age reported.

Insiders at the labels were cited anonymously in response to questions about the unlimited download service launch in the U.K. in June by ISP Virgin Media and partner Universal Music Group.

"We want to work with Virgin Media as a partner but any deal has to sit comfortably with how we value our assets against how it values its customers," a label executive involved in the negotiations told New Media Age.

"We have to evaluate each deal as it comes in and make sure we're happy with the overall value of the proposition."

The other major label, Warner Music (NYSE: WMG), has yet to agree to terms with Virgin Media on the service but "remains in consultation," according to New Media Age.

Related Links:
http://snipurl.com/rqnfq (New Media Age)