Digital music services are to be asked to up their royalty payments 7-9p per download from the current 5 pence. The move comes from the Musicians Alliance but goes against the music labels, who under the guise of the BPI, are actually going to other way and looking to cut that payment to 2.5p. The labels case is based on the pricing and royalty rates that apply to CD sales that are almost half those of downloads. The Musicians Alliance wants the labels to make up the difference from their cut of download revenue so that DMS and their customers wouldn’t be affected by the change. The whole thing is going to tribunal but no until autumn of 2006, so don’t loose any sleep over it.

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