“Universal Music Group Chief Executive Doug Morris said on Tuesday he may try to fashion an iPod royalty fee with Apple Computer Inc. in the next round of negotiations in early 2007,” Reuters reports.
“Universal… was the first major record label to strike an agreement with Microsoft Corp. to receive a fee for every Zune digital media player sold,” Reuters reports.
“‘It would be a nice idea. 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,’ he told the Reuters Media Summit,” Reuters reports.
Full article here.
Morris can seek, but he shall not find. Maybe by the end of 2007, the leech will be able to buy a sandwich with all of his accumulated Zune royalties. Steve Jobs holds cards that Microsoft can only dream of holding.
As we wrote on November 9: We’ve been saying for quite awhile that Microsoft seems to want the Zune to fail; the choice brown, the muddled business plan, the crippled Wi-Fi, the hobbled DRM-laden “sharing”, the weak advertising, the fake scroll-wheel, the “uncoolness” of Microsoft, the lack of a compelling price advantage, the lack of video content, etc. But, we couldn’t figure out why Microsoft seems to want the Zune to fail. We thought maybe they needed a tax write-off or they were just mismanaged and/or deluded. But, maybe their “plan” is to set a precedent for the next round of iTunes Store negotiations? Perhaps Microsoft hopes to hurt Apple by trying to force this weird profit sharing on iPods? To share hardware profits with the music labels makes no sense. Did phonograph makers share record player profits with music labels? No. Did Sony share Walkman profits with music labels? No. Do AM/FM radio makers share profits with music labels? No. Do TV makers share profits with TV networks and producers? No.
As we wrote on November 10: As far as Universal demanding the same ludicrous royalty scheme from Apple Computer Inc. to which Microsoft capitulated with Zune: Universal needs Apple a helluva lot more than Apple needs Universal. If Universal doesn’t want to sell music to what will then be in excess of 100 million iPods sold via what will then be a U.S. top five music outlet, Apple’s iTunes Store, then Universal can go pound sand. If Universal makes such a bad decision, they’ll be crawling back to Steve Jobs on their hands and knees within weeks begging for forgiveness. If they want to play hardball with Steve Jobs based on a deal they made with the sleazebag Redmond Zunatics, they should understand that a Jobs fastball thrown straight to the head will sideline them not just from that game, but from many games to come.
Contact Universal Music Group: communications@umusic.com
Related articles:
Microsoft’s Zune selling like snotcakes – November 15, 2006
Universal Music Group CEO calls iPod users thieves – November 11, 2006
Following Zune deal, Universal expected to demand iPod royalties from Apple – November 10, 2006
Microsoft to pay Universal for every Zune sold – November 09, 2006
What a miserable parasite trying to suck the life blood out of Job’s creation. I hope Steve makes an example with him and at this point, Steve is powerful enough to do it.
Is this guy stupid or what?
Does Universal get some money from every Sony stereo sold, that plays Universal CD’s?
Way to negotiate MS! F’n idiots….
Stupidity often accompanies greed.
My oh my…and first post too…not that it means…anything…..much.
When the record labels get a cut of every record player, CD player, cassette deck, etc sold, THEN they can talk to Apple about royalties.
They forced Microsoft into a bad deal, because M$ was desperate to look like they could compete with iPod+iTunes.
Universal greedy … !!!
I paid for all the songs on my iPods, what else do you want?
Do you think I get paid for every illustration I made each time it is used?
I want royalties for every blank sheet of paper! NOT
What next, are the States going to ask the Car manufacturers for a handout every time a car rolls off the assembly line because it may or may not drive on a highway.
MS did what they wanted, they threw a spoiler in there, just to fu@k with the model… If they get away with it we are all screwed on other stuff we use.
I’d like a villa in Tuscany, a beach house in Kauai, a few Ferraris, couple nice thoroughbreds, one or two of those wine cellars with the amazing vaulted ceilings, a staff of 12…
maybe I’ll put that into my next compensation negotiation.
Comment just filed at Universal Music’s contact page:
“I just read about your CEO’s unconscionable attempt to force Apple to pay Universal a royalty for every iPod sold. If Doug Morris goes ahead with this plan, I will boycott every Universal CD, DVD, movie and theme park from that point forward, and I will urge everyone I know to do likewise. It’s bad enough that your CEO believes most of the music on an MP3 player is stolen when surveys have clearly shown that that’s not the case (my own iPod is full of songs copied from the CDs that I’ve purchased over the years and, more frequently lately, tracks purchased and downloaded from iTunes). But to call on a device manufacturer to pay money for every device sold, after having paid money to Universal for every track sold, will further sour your supposed customers on the greed of your company and its leadership, and encourage them to pirate their music rather than acquire it legally. Hey, if they’re paying for it anyways through an iPod surcharge, why not?”
Here’s the form:
http://www.universalstudios.com/homepage/html/contact_us/contact_form.cgi
…though you may need to start here:
http://www.universalstudios.com/homepage/html/contact_us/
What are the odds on 100 million pods by the end of the year? And when is the 2 billion tune?
Universal CEO Doug Morris, obviously an idiot.
Z
What a load of garbage. I tend to believe Microsoft entered into the deal with Universal JUST to get Universal to go after Apple. Microoft has deep pockets (for now, anyway) and knows they can afford to pay Universal a few bucks… But Microsoft also knew if they didn’t agree to pay Universal, Universal would probably not go after Apple…
Microsoft is like one of those knats that keeps flying in your face even afer you swat it away…
In other news:
Hamburger patty companies will soon ask for royalties from the makers of hamburger buns
Car manufacturers will ask for royalties from tire manufacturers.
Window companies will ask for royalties from window cleaner companies.
Toothbrush companies will ask toothpaste manufacturers for a royalty.
and Doug Morris needs more hookers and blow.
two words for ya Dougie:
POUND
SALT
Let’s give him 2 Cents…
Just remember that karma can be a bitch, Doug…
I will begin charging Universal a fee of 10 cents each time I play one of their songs on my iPod. Thanks, Universal.
“The Zune (deal) was an amazingly interesting exercise, to end up with a piece of technology,” he added.
Piece of something……yes.
The day I am forced to pay a record company a royalty on a new iPod purchase is the day I start my torrent downloads 24/7. Nevermind I have all the music I want already. Nevermind the fact that the drivel passed off as music by the Major Labels today is pure shit. Just nevermind. If they stick me because I’m a thief, you can bet I’ll go out and be a thief.
JA! JA!
THAT’S ALL I HAVE FOR UNIVERSAL.
It’s like if the car manufacturers started installing a cardswipe and requiring you to use your debit card to unlock the door every time you wanted to go for a drive.
Or the commercials you may have seen where someone has to use an ATM to get to their bananas or cheese in the fridge. Or open their closet to get to that favorite shirt.
Just have two words for Morris:
NE VER
Why the freak should we pay extorsion fees to Universal becasue my neighbor might have ripped a CD of a Universal artist…
All record companies should be made to pay royalties to users and creators for the privlege of presenting other people’s work.
All of the songs on my iPod come from the iTunes store and from about 25 cds that I actually own. Really this guy is pure jerk.
Maybe he should record his flatulence, release it in about 200,000 variations then demand royalties from all users who have an ass becase they might have similar sounding faltulence.
Maybe Dell, HP, Sony, etc. should start giving Universal a dollar for every computer they sell.
Don’t people use those computers to rip CDs and download from P2P sites?
How many dollars does Universal receive from sales of CDs and other sources excluding online digital sales?
How many dollars does Universal receive from sales of music from iTunes?
How many dollars does Universal receive from sales of music from Zune Marketplace excluding the extortion fee paid by Microsoft?
How many dollars does Universal receive from the extortion fee paid by Microsoft?
How many dollars does Apple receive from the sale of Universal music from iTunes.
How many dollars does Microsoft receive from the sale of Universal music from Zune Marketplace after paying the extortion fee to Universal?
What losses will Apple accrue in actual dollars and percent of net profit if Apple refuses to pay the extortion fee and loses access to Universal?
What losses will Universal accrue in actual dollars and percent of net profit if Universal continues to provide music under the same conditions that currently exist with Apple’s iTunes?
I would like to see some verifiable numbers of profit and loss. I want to see pain and pleasure quantified in greenbacks.
Hey Universal,
K I S S M Y A S S.
m
The end of that phonecall went something like this:
“HAHAHAHAHAHAHAHAHA….. {click}”
Ah, the high olfactory note of anxiety. It smells like greasy, even rancid tuna.
It’s instructive to not only watch, but to participate in the death of an anachronistic, and increasingly un-needed infrastructure. Soon, self-publishing entites will develop Gonzo Marketing techniques to reach a critical mass of consumers, and then the real slide will begin.
How many people must you attract to fund a band? 10,000….100,000. Somewhere in that order of magnitude. I started a company 5 years ago, and now have over 300,000 hits annually.
It’s enough to create a sustained, healthy cashflow. I live in SoCal, and many of the local bands are working real hard on self-marketing. Video-intensive websites with DVD promotions, and live music calendars.
It’s the beginning of the end for the majors.
How greedy can one company get? They already get royalties when we buy CD’s at the store and songs online in the first place. Paying royalties for each iPod on top of that is double-dipping! What’s next? Making the RAM manufacturers pay royalties because the songs get stored there temporarily when we load up a song in iTunes?
Just let me know how much I am paying to Universal when I buy my iPod so I can, with a clean conscious, copy that much worth of songs I like from my friends. If I am paying for them I am going to listen to them.
What a bunch of CRAP! Greedy, Greedy GREEDY!!!
Gee maybe all the auto companies should levy a surcharge to all because some people engage in vehicular homicide?
Or how about charging every home buyer a 1% surcharge because usually when a murder is committed it takes place in a house?
All this nonsense started with the anti-gun lobby wanting additional fees and taxes from all gun buyers.
So, if I pay a royalty to Universal when I buy an iPod, am I at liberty to load Universal content for free?
So now we know why Microsoft is willing to lose millions on the Zune.
It was all just to throw a proverbial wrench in Apple’s machine.
They can pat themselves on the back now, this was their only success.
I don’t see how Universal can charge Apple a royalty for every iPod sold; I mean especially if an iPod owner doesn’t buy one song from any Universal music artist.
I wuld just LOVE to know how much Uni has made of their Zune deal by now. 2 weeks after launch, with Black Friday behind us, how many Zunes do you think are out there? 10,000? Ha! That’s laughable. I wish some mole at MS would fill us in.
Oh, the MS campus shut down today because of the snow that dumped on us. Now’s our chance to TP the building. Who’s with me?
-c
MW: ‘found’ (the Zune to be a very useful and attractive hammer)
PERFECT!
When he’s made to eat dirt by Steve Jobs it will make Steve Ballmer and JAllard@microsoft.com look even more foolish than they already do.
I don’t even have an iPod, so I guess I’m off the hook – despite all the songs on my hard drive… heh, heh. What a dork! Dream on! Hell, an iPod can only play the songs, my computer can download them (paid or not) and rip them to an infinite number of cds. Let’s see Universal go after all computers and get some kind of private tax on them. Good friggin’ luck!
MS magic word: “living” as, Universal is living in a fantasy world!
You know who will lose if this greedy shite stain on the music industry decides to holdout for some undeserved royalty? THE MUSICIANS LOSE.
Everyday Universal is out of the iTunes store the artists lose.
Universal can’t get their other shit together so they better look in every corner to see if there’s a quarter or some blood money they can suck from someone who’s innovating.
Those French Fu&#xks; have turned Universal into a bland and uninspiring brand during their tenure. Here’s wishing they lose a butt load this holiday season.
Ptthhh. I fart in your general direction!
Universal can seek an iPod royalty all it wants. Getting one is something else.
It will be interesting to see the end results of the next round of label negotiations.
MDN word ask. As in: Ask and you shall receive. Or maybe not, if you’re Universal.
Exactly who the fsck does this guy think he is?
iTS will probably sell 2B songs around March next year assuming the rate of 1B per year (as of Sept 06). Hopefully the DL rate will be increasing and Apple can announce 2B at MWSF
I am going to petition my Representatives to initiate a bill to tax Universal $1 for every child born with ears, as without ears, Universal’s music would have no market. It’s only fair they should pay in advance for access to the hearing market.
“Steve Jobs holds cards that Microsoft can only dream of holding.”
Worst case scenario: The labels band together against Apple. I wouldn’t doubt that they would do something so sleazy. I don’t know anything about Microsoft, but I can guarantee that Steve Jobs is in no position to try to fight if the Industry teams up that way.
I would hope Jobs wouldn’t cave to just one label, though. But, like they said with the Zune deal, more labels are looking into it… which just plain sucks.
Microsoft was needy and Mr. Morris is greedy. Fsck ’em both where they breathe.
Also, don’t forget that most music sold is NOT sold via iTunes, but rather on CD.
Most iPod owners don’t buy a tremendous amount of songs.
So Universal gets a cut of every Zune sold…..did they reach $10 yet?
Doug Morris ponders which local Dollar Store to squander his profit in. If he smart, he’ll save it toward his very OWN ZUNE! Then he and Ballmer can take turns squirting each other all day.
If this deal goes down the way Universal wants, it will be an authorization for everyone to download freely. Since they have already paid for it. On your marks!!
Record industry is dead.
DW, if the labels collude to force Apple to concede, you can bet that the State of NY will be all over them. Eliot Spitzer is now governor but the NY Attorney General continues to have the labels in his sights.
No doubt the other 49 states will get in line for some easy money from the labels too.
So does this mean that all future media from universal will be free on my ipod. I mean if you pay them upfront because you may listen to there stuff how can they charge you again.
Gees…
Perhaps the Gas Producing Companies should receive a royalty for every car sold too. Wow… Sky is the limit on this one.
A move STEVE MUST SQUASH
I’ve said it once and I’ll say it again – leave it to the M$ folks to mess up a great market!
I guess MS$ feels that if they can’t play in someone sandbox then no one can – the world would be a much better place without the likes of M$!
Mr. Morris has been quoted as saying that iPod owners are thieves because a study that showed many songs on iPods were not purchased from the iTunes store. Of course most people fill their iPod with the CD’s that they already own. I am going to send a photo of the 2000 CD’s that I own and have loaded on my iPod. I have supported these record companies for years through my CD purchases. I had no choice. I do not steal music. I do not have to. There is a lot of great music available on the internet for free. Guys like Doug are scared shitless because they are becoming irrelevant. It is just a matter of time before parasites like Universal and Doug are marginalized out of existence.
I will not purchase any Universal product in the future. This is not BS. I am done giving money to these companies. I will purchase from the artist if possible, but I will not purchase UMG products. I think I can live without buying a Linsay Lohan or 98 Degrees tune. I suggest that everyone check the UMG website before they buy.
Also, inform musicians that you know not to sign with such a company.
E-mail the company to let them know your plans not to purchase from them in the future and include a photo of your CD collection (to prove you are not a thief.
class action slander suit by all ipod user !!
he called all pod users thieves
wouldn’t it be nice to be able to shove it down his throat for a change?
Zune was clearly an attempt to hurt Apple and the iPod + iTunes business model, NOT an attempt to compete as a viable product with the iPod. J Allard was manipulated by his monkey-boy master.
MW: Fat chance!
Universal will lose more than they’ll gain. Online music buyers will see to that.
This may be the real reason Zune was released — to poison the relationship between Apple and the Hollywood studios and music companies. There is no degree of paranoia that is overly harsh on Microsoft. They are evil to the core.
maybe the cd/dvd makers should charge universal for every music cd/dvd they sell
Apple and the Beatles should combine forces and create their own label. Give the artists the share from downloads that the other labels were getting. Also, sell CDs/DVD cheaper through the apple onlline and retail stores. Also, end DRM.
Hey Universal!
KISS MY FAT, HAIRY, SWEATY ZUNE!!!
The fact that Apple Corps, former arch enemy of Apple Computer, would consider selling their music library through the iTunes Music Store proves without a doubt that Apple is holding all the cards in the online music game at this point in time.
Even if Apple gave all this technology to Microsoft, they wouldn’t know what to do with it. In a year or two, under the guidance of Microsoft’s complete lack of imagination, iPod + iTunes would be yesterday’s news. In the hands of Steve Jobs, on the other hand, I heartily agree that most people haven’t even dreamed of what might come next.
If the content providers…music, movie, television, video, etc could all extract a fee from all player device manufacturers,,,stand alone type, built into computer, built into televisions, cars, portables of all sorts etc. shouldn’t content then be free?
All I can say is, this is shockingly crappy of Universal.
Well given that it was precisely this Universal incentive that helped launch Zune into the #1 media player in the world according to Amazon sales, you can’t blame them for using that success as a model.
Oh wait… #36? Errr… never mind.
Zune is not meant to beat iPod…it’s designed to destroy the relationships Apple has with the record Industry. With the hopes that will shatter the thin margins (Microsoft wise) that will eventually hurt Apple’s cash cow.
But here’s the deal…
The iPod is almost a thing of the past (will maybe not the shuffle). And as soon as the iPhone (I hope they come up with a cooler name) hits the shelves, Zune will be dead.
In fact, that’s why I believe Apple has waited so long to introduce it…to make sure Microsoft was fully commented to Zune.
All Steve needs to do during negotiations is to stop iTunes from selling any Universal product for 1 week. When Universal gets no check they will have thought twice about it.
Yeah, like, we’ll send around Guido the leg breaker to dose guys at Apple if they don’ cooperate with our fair and reasonable plan.
I just hope Apple doesn’t know what the word RICO means, or we might be up the creek with the Feds…
Let’s go get some pasta…
If I were an up-and-coming band I would think twice before signing with Universal. If they try to go head-to-head with Apple and they refuse to re-licence their music to the iTMS for a few months, then your new band will get no revenue. Universal may survive, but your band might not.
Better to sign with a different label or go independent.
Record labels do get a cut off of every blank DVD, CD, and cassette.
They would love to do the same off of every hard drive, but so far only MS has caved on the Zune.
Let me tell you how it will be;
There’s one for you, nineteen for me.
‘Cause I’m the Tax Man,
Yeah, I’m the Tax Man.
Should 5% appear too small,
Be thankful I don’t take it all.
‘Cause I’m the Tax Man,
Yeah, I’m the Tax Man.
(if you drive a car, car;) – I’ll tax the street;
(if you try to sit, sit;) – I’ll tax your seat;
(if you get too cold, cold;) – I’ll tax the heat;
(if you take a walk, walk;) – I’ll tax your feet.
Tax Man!
‘Cause I’m the Tax Man,
Yeah, I’m the Tax Man.
Don’t ask me what I want it for, (ah-ah, Mr. Wilson)
If you don’t want to pay some more. (ah-ah, Mr. Heath)
‘Cause I’m the taxman,
Yeah, I’m the taxman.
Now my advice for those who die, (Tax Man)
Declare the pennies on your eyes. (Tax Man)
‘Cause I’m the Tax Man,
Yeah, I’m the Tax Man.
And you’re working for no one but me.
Tax Man!
After using Windows ME and the early Windows XP before SP2, I am confident in saying that Microsoft is incompetent enough to bring out something as horrible as Zune and it’s ecosystem without any ulterior motive.
Universal held Microsoft’s balls to the fire to get it’s pound of flesh from the Zune sales. Universal was really after Apple’s iPod when they did it. Perhaps Microsoft saw some upside in giving a royalty that would hurt their rivals more than it hurt them, but they really had no choice. Zune was DOA for sure without Universal’s participation. Remember, Zune is all about subscription music, not music sales.
Hmmm…
I guess that means that if I have an Ipod and have paid royalty fees to Universal with its purchase I’m free to add any Universal music to my Ipod, regardless of its source, without fear of a lawsuit from them.
Might work for me.
(fyi – all 4800+ songs on my Ipod are legal)
My message sent to Universal:
“At age 52 I have purchased music on vinyl, repurchased the same music at times on tape, and then almost entirely repurchased the same library on CD. My thanks from the music industry, as represented by Doug Morris of Universal, is to be called a thief because I own an iPod. Well, Mr. Morris can kiss my ass.
Here is my home address if he’d like to come by for the pleasure:
(deleted here)
Mr. Morris can coerce Microsoft in paying extortion money on their Zune, but the day Universal tries to pull the same stunt on Apple’s iPod (which saved Mr. Morris’s bacon by the way) is the day that ALL Universal/Vivendi products and venues become history to me. And believe me, this attitude is shared by the millions of iPod owners world wide.
How stupid can a corporate CEO be, to insult his core customer base? If I were a shareholder I would be clamoring for Mr. Morris’s resignation.”
I will let you all know if Doug swings by for a kiss.
Wonder how happy Universal are now that the Zune DRM is cracked…
well at least they got a fiver out of them…
Apple should take Universal catalog out of iTunes store, we should stop buying anything from Universal, and rip off as much as we can from them, since you can find their catalog online and free. In couples weeks we will see who gonna get hurt more with that, Apple or Universal.
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IF Universal does this, and I buy an iPod afterwards, I will NEVER pay for another universal song, album or movie every again. I will pirate them all, buy them used, and copy them and resell them, I’ll do whatever it takes, but they will (after they get the iPod tax) never give them another dime.
They better be careful what they wish for.