Universal Music considering asking for a royalty fee for every iPod sold in the market
November 29th, 2006 Leave a comment Visited 382 times, 1 so far today
Universal Music considering asking for a royalty fee for every iPod sold in the market
Universal Music became the first music label to strike a deal with Microsoft and they are being paid a small royalty for every Microsoft Zune being sold in the market.
The company is now hoping to get a similar deal signed with Apple Computer as they aim to get a share from the profits made from sales of Apple’s iPod range of digital music player.
Universal Music Group happens to be the largest music company in the world and they do have a lot of powers to dictate terms with Apple now that they have the support of Microsoft’s Zune and its own digital music store.
Universal Music Group Chief Executive Doug Morris said in a statement on this idea: “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. The Zune (deal) was an amazingly interesting exercise, to end up with a piece of technology.”
However, he seems to be forgetting that Apple iPod sales are making a mockery of Microsoft Zune player in the market this holiday season.
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Universal already receives royalties for each of their artist's songs sold on iTunes. I think it's rediculous for a single record company to ask to be compensated for the sale of mp3 players when the product isn't exclusive to their music. For example, if I'm an independant artist who goes through CD Baby to get online distribution and sell my stuff on iTunes, why should Universal be getting a cut of the mp3 players sold to play my music? And why should any other record company not have the same advantage that Universal is trying to have. If they're not making enough money, maybe they should start taking a look at changing their business model to keep up with technology. With the ability to purchase single songs rather than an entire album you actually need to put out good music these days, not just a good single with a bunch of filler. Possibly spending a little more time finding talent, rather than taking someone they think they can promote and pairing them with the same lame producers they've been working with for the past 20 years would be a start.
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