“Microsoft [has] agreed to share revenue from Zune sales with record labels and artists. Forcing the issue was Universal Music Group, which at deadline is the only label named in the program. UMG refused to license its music to the Zune unless it could receive a percentage of each device sold, in addition to standard music licensing fees for downloads and subscriptions,” Jonathan Cohen and Brian Garrity report for Billboard.
“These devices are just repositories for stolen music, and they all know it,” UMG chairman/CEO Doug Morris says. “So it’s time to get paid for it.”
Cohen and Garrity report, “Microsoft is working with all major and independent labels to establish similar revenue-sharing agreements. According to published reports, UMG is expected to receive more than $1 for each $250 device and sources at UMG have confirmed that half of all the proceeds from the device’s sales will be shared equally among all its artists.”
Full article here.
[Thanks to MacDailyNews Reader “Michael Y” for the heads up.]
As there are no Zunes out there, it’s obvious that Universal Music CEO Doug Morris has basically just called iPod users thieves while accusing Apple of aiding and abetting thieves the world over by making 70+ million iPods that each come with “Don’t Steal Music” stickers. Morris has just joined a unique group of iPod thievery accusers that includes Microsoft CEO Steve Ballmer and Real CEO Rob Glaser. Good luck snagging a doughnut at that group’s weekly propaganda planning meeting, Mr. Morris.
JupiterResearch on September 14, 2006 released a report,” Portable Media Player Owners – Understanding iPod Owners’ Music-Buying Habits..” The report’s author, JupiterResearch analyst Mark Mulligan, has blogged (see: Straightening the Record) the following regarding the report:
So this report got a lot of attention in the media, which shows how much interest there is in the topic. However some of the coverage has been quite selective in which parts it has highlighted and some have even used it as evidence for Apple-bashing. So for the record here are the key thrusts of the report (all of the below refer to Europe): MP3 player owners of all types (iPods included) don’t regularly buy much digital music. iPod owners are actually more likely to buy digital music than other MP3 player owners. Free online music consumption significantly outweighs paid, significantly more so for owners of non-iPod MP3 players. Device owners are much more likely to buy CD albums online than digital albums.
The facts: Most tracks on a typical iPod are not tracks that were purchased online. Most tracks on a typical iPod come from CDs that users have legally purchased and already own and ripped via iTunes. Tthe truth is that iPod owners are significantly less likely to steal music than also-ran MP3 player owners. iPod owners are “substantially less likely to download using filesharing software with only 7% of iPod people downloading illegally compared to 25% on average. And they’re more likely to be buying CDs, with your everyday iPodder buying 2.3 albums a month compared to the average of 1.8,” XTN Data reported in a January 2006 report. XTN Data surveyed over 1,000 UK and US music buyers to arrive at the data. XTN Data also found that 50% of iPod owners regularly download music from Apple iTunes Music Store.
Microsoft was either stupid, desperate, and/or sleazy by signing that awful deal with Universal. Imagine someone buys a Zune (farfetched, we know, but play along), but they never listen to a second of Universal-controlled music. Guess what, under Microsoft’s idiotic deal, Universal still gets paid for absolutely nothing; they just take the money anyway… kinda like stealing, huh? Who’re the real thieves here? The music labels do not deserve a cut of MP3 player revenues any more than television networks deserve a cut of TV sales. It’s stupid, illogical, and wrong. Microsoft’s real tag line for their Zune debacle should be: “Welcome to socialism.”
It’s time for Apple to start eliminating the middlemen.
Universal Music Group contact info:
email: communications@umusic.com
2200 Colorado Avenue
Santa Monica, CA 90404
(310) 865-5000
1755 Broadway
New York, NY 10019
(212) 841-8000
Related articles:
Did Microsoft have no choice, but to sign bad Zune royalty deal with Universal? – November 11, 2006
Following Zune deal, Universal expected to demand iPod royalties from Apple [UPDATED] – November 10, 2006
Microsoft attempts to poison Apple’s licensing deals with music labels – November 09, 2006
Microsoft to pay Universal for every Zune sold – November 09, 2006
Study shows iPod owners significantly less likely to steal music than the average person – January 13, 2006
Warner’s Middlebronfman: ‘We sell our songs through iPods, but we don’t have share of iPod revenue’ – October 05, 2005
Warner CEO Bronfman: Apple iTunes Music Store’s 99-cent-per-song model unfair – September 23, 2005
Real CEO Glaser calls Apple iPod owners thieves – May 11, 2006
Microsoft CEO Ballmer: ‘Apple iPod users are music thieves’ – October 04, 2004
“I think all you people bragging that you’ve paid for every single LP, CD, whatever of your music collection are nuts. What are you justifying? That you were completely suckered into paying extortionistic prices on something the artist gets only a fraction of? Please, stop being hipocrits and fence sitters and be proud.
Say it!
I’m a pirate, and I’m bloody proud of it.
And I’ll stop when I know that the money I spend on a CD is going to the artist, that software and music are priced comparably to their quality, not by their monopolistic death grips the corporations have on everyone. Don’t legitimise their existence and teach them some humility!”
Oh, brother! Yeah, great idea, let’s not screw the artists by REALLY screwing the artists by making sure they receive nothing!
And, oh yeah — INTEGRITY — you should try it some time. Stealing is stealing no matter how you want to rationalize it way.
There are other ways to beat down the big record labels.
Geez,
If universal has already labelled you a thief, then don’t boycott them, download their music and NOT the other labels. Maybe their artists will jump of the stupid ship and onto another smarter one.
I for one will never buy universal again. Limewire is great to check out bands beforehand without having to buy a CD just to find out that its crap.
Oh and Cub Fan, shit up and go whine elsewhere. Crapping on honest people takes a level of stupidity I just cannot fathom.
My email
“I hope you recieve this letter in good health.
The weather here has been fine, could use some rain, though. I have been fairly busy with work lately, thankfully that won’t keep us from traveling for the holidays. The kids send their love, as I do, and hope to see you soon.
Your Son
Txxx”
Sorry, I only had time to cc one to my mother.
Doug Morris, doesn’t know what he is talking about, he complaint about stolen music or piracy, so to excuse his ignorance he blame us, iPod owners, when the true is that Mr.Morris doesn’t care about piracy. Universal and the rest of music labels, still thinking that Limewire or other P2P clients are the main reason why people get music illegally. Big mistake since you don’t need any P2P application installed to get anything you want, and when I say anything I’m talking about Music, Movies, Software, Games, etc.
Mr. Morris want to make quick bucks and take a piece of Apple’s success, he should be thankful to Steve Jobs and Apple that brought back people’s interest to buy music legally again.
How I said yesterday the best solution is to take Universal Catalog out from iTunes store, to see who gonna lose.
Mr. Morris, if some day you care about your artists and decide to do something about piracy, give me a call you gonna be surprise about how much I know about it!
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We’re theives? $20 for a CD with diminishing sound quality (http://en.wikipedia.org/wiki/Loudness_war) and perhaps one decent track I guess is not theft when you can buy a DVD with far more (and better) content…
Perhaps if the music industry offered a better value, then people wouldn’t feel the need to supplement their music catalogs with content of dubious origins. When old catalogs (eg. early Billy Joel or Eagles) are issued at obnoxious prices, then one is not making strong case for charging people a fee for having an MP3 player to store music they bought already.
As for music, I pay for my songs. The only free songs I listen to is my own I have created using GarageBand. And I like my music! Someone here said iTunes should make its own label. See where this is headed? An iTunes label for folks that create their own songs using a Mac. It could be offered at very low cost or free. Problem solved; fame or fortune for all, take your pick!
my email to UMG:
To whom it may concern:
I am personally offended by the comment that recently appeared in Billboard by your chairman, Doug Morris. Here is the link to the article: http://billboard.com/bbcom/news/article_display.jsp?vnu_content_id=1003380831. To quote:
“These devices are just repositories for stolen music, and they all know it,” UMG chairman/CEO Doug Morris says. “So it’s time to get paid for it.”
Since Mr. Morris just called me a thief, I thought I’d take the opportunity to tell him that’s a load of crap. I have no filesharing applications installed on my computers, I don’t ‘borrow’ friends CDs for ripping and I actively buy songs for $.99 from iTunes. So thank you, Mr. Morris, for painting with such a broad brush. I didn’t think it was possible, but my opinion of music executives just got lower.
While we are on the subject of thievery, I find this arrangement between UMG quite hypocritical. If a poor soul is actually foolish enough to purchase a Microsoft Zune, and then never purchases a song from a UMG artist, for what purpose was UMG paid for exactly? I have trouble believing that such a socialist type compensation agreement is good for business and is ultimately sustainable. I think it’s time to rethink what you are trying to accomplish here.
Finally, I can’t help but wondering if Mr. Morris has ever asked himself, “Who is John Gault?”
Your friendly iPod loving non-music stealer,
please see enclosed email sent to Universal, note the U2 comments at the bottom
H
I object strongly to the comments made by your employee, about music theft and its association with the iPod. As an iPod owner i only have music which i legally purchased on my iPod. As a 44 year old my music buying had declined over the years. Since purchasing an iPod i have begun buying more music, all legally purchased on itunes.
i think it is wrong for your company to demand a percentage of MP3 player sales. You cannot run a car without petrol, but that does not mean that petrol companies should get a percentage of the car sale. Nor do TV companies demand a share of the TV purchase price, Closer to home i dont hear you shouting for a share of the revenues from Hi Fi manufacturers.
These comments smack of unadulterated greed on your part, and i as a consumer will think twice before considering purchasing music from any of your labels or artists.
Furthermore, your comments are in stark contrast to one of your artists U2 who have a branded Ipod. i am forwarding this email to them with the comment that is unlikely i will be purchasing any more of their music as a result of your comments.
H
Is that how it is? OK, I will NEVER buy another CD from Universal Music AGAIN. Welcome to the list.
Music Sh*t List:
1.) Sony-BMG
2.) Universal Music
Your day is coming Record Labels, be prepared to be X-ed out of the equation. You are already the walking dead. Sucking the life out of the musicians, the customers, and now the MP3 makers. Sad.
I currently have over 23,000 legal songs in my iTunes library. I have over 18,000 vinyl records yet to be converted. I haven’t counted, but I would guess I have spent $500 at iTunes Store. Before one iTunes Store purchase I had thousands of songs, all legal. I never did or will do the limewire or napster thing, that is not the example I want to teach my children.
To call someone a thief, just because they own a .mp3 player is stupid.
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That is like calling all politicians crooked. Well…
I will definetly not let them become record execs.
Hmmmm,
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I say that we should sue the CEO and Universal music for libial and slander. We get a class action suit for say 1 billion dollars for calling us thieves and ruining our careers.
I am sure there are some lawyers out there that will take this on Pro Bono.
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N.
I read where UMG called iPod users “theives”. Seems you want it both ways, it’s gonna end now. The fact that you promote and foster such filth as any one of the thugs you call poets is the REAL crime you fools. For 10 years now I have sat by and simply chose to not tune in the garbage you pass off as music.
Now that a couple of scalp hunters like Al Sharpton and Jesse Jackson have rallied against Mr. Don Imus, to the point his millions of listeners/fans are now deprived of the invaluable platform for poltical discourse his show provided as no other, I am demanding that you immediately cease the manufacture of CDs/videos which call black people “niggers”… “hos”… “bitches”… and any other sweet terms of endearment.
Hello…. anyone home? The hypocrisy that allowed the swift execution of Imus, is a double edged blade you see. The criminal culture this hip-hop has spawned is all to be layed at your door, and now it’s come home knocking. The millions of listeners that tuned in each weekday to ‘Imus in the Morning’ now have 3 hours to spend coming at all record companies which promote this swill, Imus fans are a group which will not rest until we see justice on Don Imus’ behalf.
You can’t have it both ways UMG, you have made your billions and now you should have to spend it defending your actions of the destruction your so called “ARTISTS” have brought upon America’s youth and culture.
Who would’ve thought that the issue of racism would’ve culminated over a serial do-gooder for childrens charity like Don Imus. No… NOT any of the countless thugs who whore out their own race daily in such musical gems as “Slap My Bitch Up”… hey, who can’t hum along to that old standard huh? And what Don imus said, the heart of this whole issue is the context in which his comment of “nappy headed hos” was uttered. First of all, let’s get off the high horse of which these basketball bores have been placed, take them down off the pedestal and really look at them. How many of them do you suppose HEARD the comment Imus made? The answer: not a single one… if you want to realize how incredibly stupid this all is, not one of these chicks even knew WHO DON IMUS WAS!!!!!
I gotta say that if a comment a shock jock says has become the source of such outrage, I’m gonna call you mo-fo’s on it right here and now. I want every rim-spinning Cadillac jumping gold teeth grill wearing tattooed thug who pimps out their whores in all the videos to be took off the airwaves right now. I’ve tolerated these bastards for 10 years and simply did what everyone else who sees it as the racist filth it is did, turn the damn dial. It’s that easy, but now that a man who has generated $40 million dollars in charity for children and fallen soldiers families has been taken off the TV and radio for a “racist slur”… every other one of the REAL offenders has got to go TOO. I mean right now, not yesterday. I would say that 75 to 80 % of the music I listen to is made by black artists, however it is from the 1940s to the 1970s… Funkadelic y’all. Today’s wannabe hip hop whores who come along and cut out a groove from real music and flap their yaps over it thinking that it is in any way at all VALID, well I got news for y’all, it aint.
Get a life and do something with it other than think that anyone in the world has any control over your own happiness, that comes from wthin you and nothing that any person says should be able to sway you one way or the other, dig? Realize that if you are black, stop pimping out your own race by sticking a bunch of half naked whores grinding their crotches into a camera lens while thugs flash a gold toothed grin shouting that “she ain’t no golddigger, but she ain’t messin’ with no broke nigger”. Have you ever heard a band called ‘Catalyst’… ‘The Politicians”… ‘Eddie Fisher’…. ‘Badfoot Brown’ [who by the way is actually Bill Cosby, betcha didn’t know that]… ever heard of Dorothy Ashby… Cleveland Eaton… Phil Upchurch? Get some soul and re-issue all of the above artists, who by the way, sit in your vaults rotting. And I gotta say that I know some of y’all are hip to what I’m sayin’ here, and to you… righteous. It don’t take Flavor Flav to tell you what time it is does it? If it does, your done anyways.
“The music labels do not deserve a cut of MP3 player revenues any more than television networks deserve a cut of TV sales.”
HEAR, HEAR!
The music labels do not deserve a cut of MP3 player revenues any more than television networks deserve a cut of TV sales. It’s stupid, illogical, and wrong. Microsoft’s real tag line for their Zune debacle should be: “Welcome to socialism.”
Do mp3 files when played on a mp3 player play with paid advertisements to generate revenue off? NO! so how it can it be the same as television networks getting a cut off of tv sales.
the only socialist thing about this is people who steal music create a socialist environment for the artist not the consumer.
What’s stupid and illogical is that you have a job of statue where you can write these ignorant statements without considering what it is your saying – and you get paid for it.
What if I were to create this outstanding technology called cut and paste everything your publicist produces on the site and post it on my own controlling your distribution and generating revenue for myself from your hard work.
I bet your boss would be a little upset if that was socially acceptable, economically acceptable, and more importantly successful.
Companies who produces mp3 players should be forced to give virtually ALL of their profits to artists or labels in one form or another.
People like you who have authority and influence should be severely punished for encouraging the social acceptance of stealing. It is media like you who put so much responsibility on artists to be conscience of the work they create
yet in your own inane hypocrisy are completely irresponsible with the influence you as a journalist has.
Its the music industries fault that people steal in the first place…If they hadnt 1)increased the price of cd’s just as downloading came in 2)Introducing buying music on the internet way to late as high quality mp3 files were already there. Its the music industries fault for demonizing the customers and not introducing some kind of music market on the internet
The TV analogy is interesting. Television viewers in the UK have to pay for a yearly TV License, which funds one broadcaster – the BBC. We have to pay this even if we never watch any BBC channels. It’s just as brain-dead, yet it’s been happening for decades here.
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