“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
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$!