Universal today
accused all owners of non-Zune music players of stealing music, according to a report from
Billboard Magazine. The major record label last week revealed that it had struck a deal with Microsoft to
collect royalties on each Zune player sold. "We felt that any business that's built on the bedrock of music we should share in," Universal CEO Doug Morris said. Today Universal's chief revealed that the label refused to license its content to Microsoft's Zune Marketplace online store without royalties, arguing that his company requires compensation above and beyond direct music sales, regardless of whether Universal artists' music is ever copied to a Zune. "These devices are just repositories for stolen music, and they all know it." Morris' statement in effect suggests that players without such licensing schemes -- such as Apple's iPod -- are used primarily to listen to illegally copied songs.
The executive also clarified the terms of Universal's deal with Microsoft, noting that the company receives $1 per every $250 Zune sold and distributing half of the profits equally amongst its artists, according to Electronista. Universal previously hinted that it will try to negotiate similar terms with Apple and other online store owners in the future, but has not said that it would adjust the price of the music itself.
Filed under: industry
Other story tags: digital music/video
subscribe to comments
for this article
As for Microsoft, if I were them, I'd probably ask Universal to stop helping them sell this thing...
My apologies for the implied nasty, but I am really upset. Now I am searching for the word Universal on anything I'm even thinking of buying.
a tiger can't change it stripes, music company bitches. if a person is willing to rip off music and the zune was the only player on the market you can bet your ass they'd find way.
greed mongerers should change expressions like, "These devices are just repositories for stolen music, and they all know it" to the more appropos, "These devices are just repositories for our music, and we want a cut of its profits."
you're so transparrent you make yourselves look ridiculous. stop lying to the press and tell them how it really is.
It'll be interesting to see when Universal tries this with Apple. It wouldn't shock me if Universal ended up pulling their songs from iTunes. I don't think it'll directly hurt iPod sales. Most people will just shrug. I doubt anyone will buy a Zune in order to play music from Universal's catalog.