A royalty fee for iPods? Universal CEO Morris must be dreaming

“Universal Music boss Doug Morris may be grinning from ear to ear on the royalty deal his company has struck with Microsoft on the sale of Zune players. However, if as suggested in a Reuters report he expects to do a similar deal with Apple on the sale of iPods, he must be dreaming,” Stan Beer writes for iTWire.

“The strategy of Microsoft by complying with music industry demands for a cut on Zune sales is obviously to try and drive a wedge between the industry and Apple,” Beer writes.

Beer writes, “Jobs and Apple have already done the hard yards and sold billions of online music tracks through iTunes all over the world, while Zune Marketplace has sold next to nothing in its only market the US. That’s why the combined might of Universal and its fellow music industry heavyweights were simply crushed by Jobs when they tried to get Apple to change its pricing model in their last round of negotiations… The clear message for Doug Morris and Universal is that their best bet of getting a piece of the action on iPod sales is to buy some Apple shares.”

Full article here.

Related articles:
Universal CEO Morris wants iPod royalty fee from Apple – November 28, 2006
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

61 Comments

  1. Microsoft’s deal with Universal is one of the reasons I bought a Zune. Not only do I have Microsoft with their vast technical wizardry to create a hardware and software marvel in the Zune and Zune Marketplace, but all the great things that come with a music industry heavyweight supporting me as well. Can anyone name any two groups that have a better track record of supporting the customer than Microsoft and the record labels? Of course not. I’m feeling pretty good about owning a Zune with this alliance.

    Hey Apple, instead of focusing on ways to manipulate the industry and stick it to the customer why not take a page out of Microsoft’s and the music industries’ playbook and try to do a little something called ‘focus on the customer?’ Apple doesn’t have the guts to strike a deal with the record labels like Microsoft, but they have the guts to ship shoddy MP3 players with crappy software before they’re ready leaving the customer to pick up the pieces. Typical. You can’t push Microsoft around. Stick with a winner. Go with Zune.

    Welcome to the Social.

  2. the bullshit thing here is that universal don’t create the music, the ARTISTS do. If they passed on the $1 directly to the musicians I still dont think its right but it would be better.

    This is just an example of greed.

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