Despite being competitors in the music industry, the big music labels had "most favored nation" terms inserted into contracts with digital music distributors. Under those terms, the LA Times Other unnamed executives said the most-favored nation clauses were "common in contracts" for distributing digital music online. Further, some contracts compelled the online services to spend the same amount of marketing money on promoting songs regardless of their owning label. An interesting portion of the Times report cited the growing power of online distributors, namely Yahoo, which has apparently taken a stand against one label in a money dispute: Last week, for instance, Yahoo Music pulled from its website some of Warner Music Group's videos, in a bid to force the company to renegotiate the prices Yahoo pays when users stream the clips. Executives from both companies have begun discussions to resolve the issue. Email the author Del.icio.us") | Yahoo! My Web David Utter is a staff writer for Murdok covering technology and business.
Spitzer Checking Digital Music Collusion
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