A Reuters story reports that Microsoft has agreed to pay Universal Music Group a fee for each new Zune music player that is sold.
Apple currently does not give a cut of iPod sales to music companies.
"We felt that any business that's built on the bedrock of music we should share in," said Doug Morris, chief executive of Universal, owned by French
media giant Vivendi.
At present music studios take a cut of legal digital song purchases but see no part of hardware sales, but this could set a precendent that may affect
Apple as well as others in the industry. In some countries (such as Canada), there have been attempts at implementing an "iPod tax" to offset piracy
losses for music companies.BDx13 - 11-9-2006 at 05:02 PM
i GUARANTEE you the only reason this is happening is because Universal wouldn't allow their music to be part of Microsoft's new Zune service
otherwise. oh, and they're definitely getting a per-track cut as well. MSFT did it with the xbox and they'll do it again with Zune... lose money
hand over fist to gain marketshare; in this case, attempting to take it from Apple and the iPod.Siczine.com - 11-9-2006 at 05:26 PM
I think that's smart business practice. It may be shady but that's business.upyerbum - 11-9-2006 at 09:15 PM
A free market is bullshit anyway.XnMeX - 11-10-2006 at 08:17 AM
I think that is fucking stupid. Do they pay Thorp any money for each unit sold? Nope... But I am sure some Thorp songs will see there way onto the
player. Also, it PLAYS music, doesn't INCLUDE music. I am sure cd player manufacturing companies don't pay music companies.BDx13 - 11-10-2006 at 11:19 AM
in my opinion, good business is very different from good salesmanship. it's good for universal in that they sold msft on the idea of bending
WAY the fuck over. but as a consumer, my mentality is, "why is a portion of the hard earned money i spent on this player going to a label that has
nothing to do with the player? i'm not going to put any of their music on my player, why should i pay more so they can get paid?" what's next? cd
players? a/v receivers? that said, blank cassettes used to come with a "tax" that went to the labels, and from what i undersatnd, blank cds sold in
canada do as well.Siczine.com - 11-10-2006 at 05:04 PM
The Zune will probably be cheaper than the Ipod, so I can't really see the consumer getting fucked too much. Apple would likely get the worst of it
because IPOD is it's only worthwhile product and now big bad Microsoft is threatening that. Don't hate Microsoft. it's the gov't laws allow them to
do what they do. And as consumers, you should be knowledgeable of what you are buying. It's not like Microsoft has a gun to anyones head forcing
them to buy their MP3 player.
And off topic but, MP3 devices and digital tracks are the main reasons small labels and what not are getting fucked.BDx13 - 11-10-2006 at 06:54 PM
that may be my biggest complaint. it's not like steve balmer cut thorp and sailor's grave a check.XnMeX - 11-10-2006 at 11:28 PM
