Business Matters is a daily column that offers insight, analysis and opinion on the day's news.

-- A funny thing happened on the way to the future of the record industry: disagreement. Universal Music Group’s planned ISP-based music service has not won over its peers ahead of its planned launch later this year. New Media Age cites sources at Sony Music and EMI as saying the service is structurally flawed and will cannibalize existing digital sales rather than bring persistent file-sharers to the legal side of downloading. Warner Music Group is still consulting with UMG, said the report. A senior UMG source told NMA its research indicates subscribers would download an average of 35 tracks per month and fears of cannibalization are unnecessary. Cannibalization is a fair concern. Services meant to reduce digital piracy may be a cheaper alternative for big spenders. While it’s entirely possible some big spenders could save money on an ISP music service – depending on the plan, of course – the big payoff of these services will be in their ability to sign up the casual, low-spending fans. (New Media Age)

-- What sort of quantity and price levels will be offered by UMG’s ISP-based service? No word yet, although Virgin Group chairman Richard Branson said the service will give consumers “all the MP3s they want for a small monthly fee.” The Guardian reported Virgin is thought to be considering setting the price around a couple of albums per month. (The Guardian)

-- Global Gaming Factory, the hopeful buyer of the Pirate Bay, has been delisted from the Swedish stock exchange due to misleading the market through its lack of disclosure. (TorrentFreak)

-- Guitar Hero 5 is offering a free future download of the Van Halen when it is released in December. In addition, Activision Blizzard will push out DJ Hero, a turntable based game, in October and Band Hero, a version with more pop music, in November. Don’t expect the gold rush to stop. “Activision and MTV Games say the music-game genre hasn't peaked. But they are trying to do more to expand their audiences and get existing ones to keep buying new games. ‘Innovation is critical in any entertainment," says Scott Guthrie, executive VP of MTV Games.’”(Wall Street Journal)

-- Federal authorities have broken up a large Internet music piracy group that often released songs before their street dates. One of the accused worked at a manufacturing plant in North Carolina and had access to Universal Music Group albums months before their commercial releases. (Washington Examiner)

-- The latest Credit Suisse estimate of YouTube’s annual loss: about $400 million. The analysts lowered their estimate of YouTube’s bandwidth costs after their previous estimate did not take into account YouTube’s cost savings from peering. (MediaMemo)

-- We7’s Clive Gardener disagrees with Forrester’s release window strategy. Writing in the comments at Music Ally’s blog, Gardener criticized the recommendation to give music to free services last. “Holding releases back from free to consumer services such as ad-funded streaming would do nothing except drive people back to unlicensed services. Segmentation and added value can still work – but all these segments need to co-exist timewise.” (Music Ally)

-- Coverage of the new iTunes v. 9 can be read at Ars Technica and (Engadget).

-- Video demonstration of the new Rhapsody iPhone app, which was just approved by Apple. (Vimeo)

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