Zune Thoughts - Daily News, Views, Rants and Raves

Be sure to register in our forums! Share your opinions, help others, and enter our contests.


Laptop Thoughts

Loading feed...

Windows Phone Thoughts

Loading feed...

Digital Home Thoughts

Loading feed...





All posts tagged "profit"


Friday, November 10, 2006

What Microsoft Thinks of the Universal Deal

Posted by Darius Wey in "Zune Talk" @ 04:50 AM

http://zuneinsider.com/archive/2006/11/10/on-the-universal-deal.aspx

"Today we're announcing that we'll pay UMG a per device royalty for every Zune player sold – a first in the industry. Why? We're about supporting artists, and ensure they continue to prosper with the emergence of the digital music model. The distribution of digital music isn't that old, and the current method isn't really doing a lot to compensate artists fairly. We worked closely with Universal to create this revenue opportunity for artists, as the industry transitions to a time when it can fully take advantage of new opportunities that digital experiences offer, both for consumers and for artists and labels."

There were more than a few eyebrows raised yesterday when it was revealed that Universal would be getting a cut of Zune sales. Unfortunately, Microsoft and Universal couldn't talk specifics, but the former did raise a couple of points today that I thought were worth sharing. Firstly, a portion of the cut goes to Universal's artists. Now who the artists are and how much of that cut they get is still a question mark. We did say they couldn't talk specifics, right? ;-) Secondly, Microsoft is talking to other labels (indies and majors) about the opportunity to participate in a similar manner. Yes, we'll give you a minute to get your head around that one. It's a "power to the labels" approach that not everyone is going to want to embrace. The upside of all this is that there'll be more tracks pre-loaded on the Zune than first announced, and there'll be more tracks available for purchase in the Marketplace (yay to choice). The downside is that over time, the strong-arm tactics of the labels is only going to worsen (nay to money-grubbing). They'll make money off the songs. They'll make money off the hardware. Soon, it'll be your clothes, and your soul.


Wednesday, November 8, 2006

Universal Gets a Cut of Zune Sales

Posted by Darius Wey in "Zune Talk" @ 11:45 PM

http://today.reuters.com/news/articlenews.aspx?type=technologyNews&storyid=2006-11-09T031549Z_01_N08407877_RTRUKOC_0_US-MEDIA-MICROSOFT-UNIVERSALMUSIC.xml&src=rss

"Microsoft Corp. (MSFT.O: Quote, Profile, Research) has agreed to pay Universal Music Group a fee for each new Zune digital music player it sells when the iPod rival launches next week, the companies said on Thursday. The groundbreaking deal could redefine the digital music business pioneered by Apple Computer Inc. (AAPL.O: Quote, Profile, Research). Rivals including cell phone makers eventually could pay for hardware sales as well as for the music itself, Universal said. Microsoft is trying to break into an industry closely aligned with archival Apple, which is credited with nearly single-handedly building the legal Web music world with its iPod players and iTunes music store. But Apple does not give a cut of sales of iPods to music companies. It only pays labels for songs sold on its iTunes music store."

At this stage, we're not quite sure how this adds up. None of the pre-loaded content appears to belong to Universal or its sub-groups, and they still get a cut even if the user doesn't load a single Universal track on to the device. So what's going on? Perhaps Microsoft and Universal are getting ready to ink a deal that will put the Zune in a favourable light, and this is just a woo tactic to keep Universal from getting too cozy with Apple. We'll be keeping our eye on this one.


Reviews & Articles

Loading feed...

News

Loading feed...

Reviews & Articles

Loading feed...

News

Loading feed...

Reviews & Articles

Loading feed...

News

Loading feed...

Reviews & Articles

Loading feed...

News

Loading feed...

Reviews & Articles

Loading feed...

News

Loading feed...

Sponsored links