Universal chief may badger Jobs for iPod royalties
Following a successful campaign that garnered it a piece of each Zune media player Microsoft sells, an emboldened Universal Music Group may be turning its attention to Apple Computer's iPod.
Speaking to a Reuters Media Summit on Tuesday, UMG chief executive Doug Morris said he may look to tailer a similar deal with Apple that would include a kick-back from iPod sales.
"It would be a nice idea," he told attendees. "We have a negotiation coming up not too far. I don't see why we wouldn't do that... but maybe not in the same way."
Morris added that it "was an amazingly interesting exercise," to end up with a piece of technology in the case of Zune.
Earlier this year, UMG refused to license its music to Microsoft unless it could receive a percentage of each Zune sold, in addition to the standard music licensing fees for downloads and subscriptions.
"These [digital music player] devices are just repositories for stolen music, and they all know it," Morris was quoted as saying at the time. "So it's time to get paid for it."
According to published reports, Microsoft ultimately agreed to hand over approximately $1 to UMG from the sale of each $250 Zune.
Apple and UMG are due to meet at the round table for a new phase of music licensing negotiations in early 2007.
Speaking to a Reuters Media Summit on Tuesday, UMG chief executive Doug Morris said he may look to tailer a similar deal with Apple that would include a kick-back from iPod sales.
"It would be a nice idea," he told attendees. "We have a negotiation coming up not too far. I don't see why we wouldn't do that... but maybe not in the same way."
Morris added that it "was an amazingly interesting exercise," to end up with a piece of technology in the case of Zune.
Earlier this year, UMG refused to license its music to Microsoft unless it could receive a percentage of each Zune sold, in addition to the standard music licensing fees for downloads and subscriptions.
"These [digital music player] devices are just repositories for stolen music, and they all know it," Morris was quoted as saying at the time. "So it's time to get paid for it."
According to published reports, Microsoft ultimately agreed to hand over approximately $1 to UMG from the sale of each $250 Zune.
Apple and UMG are due to meet at the round table for a new phase of music licensing negotiations in early 2007.
Comments
I think apple would be insane to go along with a deal like that. Apple is leading the way with Itunes to get people to buy music and movies legally and not to pirate them. If they were to cave then where would these loyalty kick backs off of hardware sales end?
Furthermore as a musician, I doubt if any of the money that they make from Zune will ever go to the artists.
Its just corporate thuggery of the worst kind.
Screw Morris. Your words only cause more people to steal more of the small percent of your music that is even worth listening to.
And screw Microsoft for so easily giving in to such anti-consumer bull.
I hope Microsoft loses millions on the Zune, and I hope Apple refuses the so called 'royalty' even if they will withhold their content from iTunes. It'll send them a message that they need to hear very loudly: You don't deserve our money. Shut up and be glad anyone is paying you anything, and get to work improving your mediocre product and god awful public image. Morris, you can start by firing yourself.
If Apple agrees with this (although I highly doubt that they will), I will strongly consider going with another company for my next MP3 player.
</aggrivated rant>
That infuriates me. It extremely lowers my opinion of microsoft, I didn't think it could get any lower. And UMG isn't much better.
But no worries, Steve Jobs will never go along with something like that. I would love to be a fly on the wall when those negotiations take place
My music isn't stolen. I would think most people ripped their personal CD collection for the bulk of their library. People like Morris despise their own customers. If it weren't for Apple they'd NEVER have developed an outlet like the iPod. Fools.
The small-mindedness of Universal is straightforward enough -- unable to make expand its own markets or revenue by itself, it choses instead to leach off of an entity that has expanded markets.
A really sick aspect of this is that these clowns actually believe they are losing money because of technologies like this, when it has been shown in the past that these technologies enhance their revenue. Such was the case with the VCR. Jack Valenti had a holy fit about the VCR, and said it would be the death of the movie industry. We all know what happened. By expanding access to movies, the revenue was enhanced by several times. Of course, the iPod and digital distribution (even if initially "stolen") expands access to music in the same way. These are people impervious to the facts of the way markets work. Take Bill Gates. We probably wouldn't know who he is if people hadn't copied his BASIC computer language paper tape.
Bill Gates' Paper Tape Open Letter on Wikipedia
The letter's text
Of course, the Apple II computer had Applesoft basic built into it, and it was licensed :-)
*sigh*
Universal is still a HUGE companie in itself, and witholding iTunes content would mean that the largest Movie Publisher (I believe they are the Larges Movie Publishers, correct me if I am wrong please and thank you) this would be quite an impact.
The bright side to all of this is when Universal starts losing money for witholding iTunes content, then they might see that it's not used for stolen music after all. I don't believe Apple will give in so easily, Microsoft throws Money to the wind with a side of all their Caution so it wouldn't surprise me that they made that deal.
Well, consumer backlash here we come
UMG may be big, but they're not about to withdraw their music from iTunes I don't think. Not with the market that iTunes has. If they try playing that card, Steve will call their bluff.
I can't see Jobs caving now on that BS.
I now purchase from the iTunes Store and rarely download music illegally.
Some of my Music on my iPod was downloaded illegally and other songs I got from friends. To date, 65 songs were purchased from the iTunes Store.
I now purchase from the iTunes Store and rarely download music illegally.
I've got 932 songs from the iTunes Store. And if iTunes doesn't have it, I download it semi-legally from the Russion based allofmp3.com
LOL!
It's either legal or not (I don't know if it is.)
Semi-legally?
LOL!
It's either legal or not (I don't know if it is.)
Well, it's like 3 cents per megabyte. So I am PAYING for it... sort of. It ends up costing around a dollar or two for a whole album.
I've got 932 songs from the iTunes Store. And if iTunes doesn't have it, I download it semi-legally from the Russion based allofmp3.com
Allofmp3 is known to be quite illegal...Although i'm assuming the RIAA would rather go after somebody sharing on a P2P than somebody "purchasing music" from a grammatically challenged Russian outfit.
Allofmp3 is known to be quite illegal...Although i'm assuming the RIAA would rather go after somebody sharing on a P2P than somebody "purchasing music" from a grammatically challenged Russian outfit.
no no no, I sent them an email asking if they were legal and they said, "yes".
Either way Apple needs to start selling >128k tracks. People really want this and they are starting to go illegal for this reason.