Perhaps Steve Jobs has a relative as The Justice Department. The four largest music labels including Warner Music (WMG), Universal, and BMG want to band together and start a music download operation called Total Music.
Since Apple (AAPL) ITunes has a lock on the digital music industry, sets prices, and gives music publisher crumbs from the table, setting up a competing service would seem to make sense. WMG shares are only down 65% in the last two years. In most industries that would be a sign of extreme distress.
But, the US government may think the new venture is an antitrust problem. The Wall Street Journal writes that "Universal and Sony BMG Music Entertainment, the No. 1 and No. 2 music companies world-wide by market share, have gotten letters of inquiry from the Justice Department."
The law is the law and that may not change, but a situation where an industry cannot unite to save its own hide reflects a perverse sort of justice. The music publishers can’t do much to Apple. It already holds the higher ground.
Douglas A. McIntyre
Top Gaining Stocks
Top Losing Stocks