"The widely publicized failed negotiations between Microsoft and the major labels is another crack in the suddenly vulnerable label-provider alliance. In this case, according to reports, it was Microsoft refusing to accept standard terms, not the labels hoping to rock the boat as in the escalating disagreement with Apple. David Utter at WebProNews postulates that Microsoft wanted to open a service priced at the bargain level of Yahoo! Music Unlimited, and was uninterested in subsidizing the effort. At any rate, no subscription service from Microsoft will be forthcoming soon."
Wow. Even Microsoft is saying no to the studios. Bill Gates isn't stupid. He knows how to make money. Consumers will only pay so much money for downloadable content. Record and Movie industry execs had better wake up and smell the coffee.
Microsoft Fails to Reach Terms on Subscription Service
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