12/24/2005

Warner subpoenaed in NY probe of music industry

Filed under: — By Aviran Mordo @ 12:11 pm

Warner Music Group Corp. has been subpoenaed by the New York Attorney General in connection with an anti-trust investigation into pricing of digital music downloads, the company said in a securities filing on Friday.

Warner said it received the request for information on Tuesday.

“As part of an industrywide investigation concerning pricing of digital music downloads, we received a subpoena from Attorney General Spitzer’s office as disclosed in our public filings. We are cooperating fully with the inquiry,” said Warner Music Group spokesman Will Tanous.

The New York Attorney General’s Office could not be reached for comment.

Last month, Warner Music, one of the largest U.S. record companies, agreed to pay $5 million to settle a separate New York state “pay-for-play” probe into how the music industry influences which songs are played on the radio.

Sony BMG paid $10 million and agreed to stop making payments to radio stations for airplay to settle the “payola” probe. Universal Music Group and EMI Group Plc are still under investigation.

A music industry source said the current probe appears to center on the way music companies set wholesale prices for digital downloads.

Source: Reuters

 

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