Studio cited in antitrust price probe

LOS ANGELES - Warner Music has been subpoenaed by the New York Attorney-General in connection with an ongoing antitrust investigation into the pricing of digital music downloads.

Music industry sources said the probe appeared to centre on whether the Big Four music studios - Warner, Sony BMG, EMI and Universal - colluded to set wholesale pricing for song downloads. The investigation could also be related to the studios' upcoming licensing renegotiations with Apple, maker of the iPod digital music player, for its iTunes music store.

In September, Apple chief executive Steve Jobs called the music industry "greedy" for considering increasing digital download prices and warned the move could drive iPod users to piracy.

The studios have indicated that they want to institute variable pricing at the iTunes store, which now charges 99USc a song.

Warner CEO Edgar Bronfman told an investor conference in September that "not all songs are created equal ... There are some songs for which consumers would be willing to pay more and some we'd be willing to sell for less".

The New York investigation could also be an outgrowth of an earlier probe, settled in 2003, which accused music studios and retailers of colluding to fix minimum retail prices for CDs.

- REUTERS