“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
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.