arstechnica:

Earlier this month it was widely reported that EMI was indeed ready to cast DRM into the dark abyss and earn the company the honorable status of being the first major music label to realize that DRM alienates honest customers. As it turns out, the company is indeed open to the possibility of ditching DRM, but they expect to be paid well for it, and the online music retailers aren’t ready to meet their demands.

EMI is the only major record label to seriously consider abandoning the disaster that is DRM, but earlier reports that focused on the company’s reformist attitude apparently missed the mark: EMI is willing to lose the DRM, but they demand a considerable advance payment to make it happen. According to Bloomberg, EMI has backed out of talks for now because no one will pay what they’re asking. No dollar amounts are known at this time.

Online music giants Apple and Microsoft, along with smaller players including RealNetworks and Yahoo! Music, sought to indulge EMI’s demands by waving leafy-green dollar bills at the company, but it wasn’t what EMI asked for, and the company subsequently put the talks on hold. Warner’s renewed interest in EMI is likely another contributing factor to EMI’s own cold feet: Warner’s leadership is devoted to DRM, making the DRM-free discussions all the more circumspect.