Microsoft to pay Universal for every Zune sold
Seeing as how we are starting to post Microsoft type announcements in relation to the Zune in this forum I thought I would repost this with my comments.
Over at MacNN they are saying how this is another way Microsoft is competing with iPod. How are they competing? The way I see it is that Microsoft is already losing money on the Zune and now they will lose even more money. Furthermore I am confused by Doug Morris's statement as they are not doing anything to promote the success of the Zune, or are they? What am I missing here?
I also find this quote interesting "Universal no longer feels satisfied with music sales." Then maybe they should come up with innovative ways to run the business of music. How much more money do these executives need? Sadly, the whole process from the raw emotion of the artist to the song writing, to the recording to even the performing, has truly been lost by the major labels and all they care about is the profit.
Quote:
Originally Posted by AppleInsider
Microsoft has entered into a controversial agreement to pay Universal a royalty fee for every Zune player sold, Reuters reports. While neither Microsoft nor Universal has publicly revealed the amount per player, the music label indicated that it believed it had a stake in the Zune's success.
"We felt that any business that's built on the bedrock of music we should share in," Universal chief Doug Morris says.
Significantly, the deal is not directly linked to content shipped with the player: its preloaded music is provided through music labels with no clear connection to Universal, such as Sub Pop and V2, indicating that Universal no longer feels satisfied with music sales themselves. Microsoft is reportedly in early discussions with other labels for similar fees. The change in approach towards music revenue may have future ramifications for Apple, whose deals with music labels have so far extended only to profits from iTunes content sales and have not affected iPod hardware.
Microsoft has entered into a controversial agreement to pay Universal a royalty fee for every Zune player sold, Reuters reports. While neither Microsoft nor Universal has publicly revealed the amount per player, the music label indicated that it believed it had a stake in the Zune's success.
"We felt that any business that's built on the bedrock of music we should share in," Universal chief Doug Morris says.
Significantly, the deal is not directly linked to content shipped with the player: its preloaded music is provided through music labels with no clear connection to Universal, such as Sub Pop and V2, indicating that Universal no longer feels satisfied with music sales themselves. Microsoft is reportedly in early discussions with other labels for similar fees. The change in approach towards music revenue may have future ramifications for Apple, whose deals with music labels have so far extended only to profits from iTunes content sales and have not affected iPod hardware.
Over at MacNN they are saying how this is another way Microsoft is competing with iPod. How are they competing? The way I see it is that Microsoft is already losing money on the Zune and now they will lose even more money. Furthermore I am confused by Doug Morris's statement as they are not doing anything to promote the success of the Zune, or are they? What am I missing here?
I also find this quote interesting "Universal no longer feels satisfied with music sales." Then maybe they should come up with innovative ways to run the business of music. How much more money do these executives need? Sadly, the whole process from the raw emotion of the artist to the song writing, to the recording to even the performing, has truly been lost by the major labels and all they care about is the profit.
Comments
M$ being underhanded..... SHOCK!
M$ losing even more money on the Zune.... SHOCK!
M$ being underhanded..... SHOCK!