Thursday, January 18, 2007
Universal Could Take a Bite Out of Apple
Posted by Darius Wey in "Zune Talk" @ 06:00 AM
"Other recording companies have yet to follow Universal's hard-line lead, particularly in suing online video and social networking sites. They appear happy to let Morris carry the fight through lawsuits and other measures. In his tussle with YouTube, Morris called the site a hub for pirated music videos and negotiated a licensing deal that landed Universal and other labels small stakes in the company just before it was acquired by Google for $1.76 billion US last year. Morris has already suggested, albeit guardedly, that his next target will be iPod-maker and No. 1 online music retailer Apple Inc. With Apple's licensing deal to sell Universal music on iTunes set to expire in May, Morris said, "there might be other ways to get paid." Last fall, Morris threatened not to license Universal music to Microsoft just days before it was scheduled to launch its own online music store and its Zune digital music player. In response, the software company coughed up a royalty of just over a dollar for every Zune sold and paid music fees."
Whether you like it or not (chances are, you don't), Universal is on a mission to milk everything for what it's worth. Zune, of course, fell victim to the label's strong-arm tactics late last year, and come May, the iPod could be next. And beyond? Only time will tell.
Whether you like it or not (chances are, you don't), Universal is on a mission to milk everything for what it's worth. Zune, of course, fell victim to the label's strong-arm tactics late last year, and come May, the iPod could be next. And beyond? Only time will tell.
