Universal gets a share of the Zune

Microsoft and Universal Music Group signed a licensing deal for the Zune player and Marketplace that calls for the recording company to get paid a cut of the sales of the device.

Chris Stephenson said that Microsoft is pursuing similar agreements with other major record labels.

By paying record labels a portion of Zune player sales, Microsoft hopes to have more freedom to allow song-sharing or other promotions, Stephenson said.

"There's certain marketing elements that we're looking at going forward, all based around the sharing and wireless scenarios," he said. He declined to provide specifics.

"The only factor was that we feel that there's a great deal of music that's (stored) on these devices that was never legitimately obtained, and we wanted to get some sort of compensation for what we thought we're losing," Morris said. "I want our artists to be paid for the music that makes these devices popular."

Morris said "I don't want any business built on our music without getting paid a part of the business".

The Major music companies are really hungry and aggressive. Don't you think? Can you imagine if all music producers were asking for a piece of the profits on hardware? What about that small indie music producer? The Zune was made for their music? Are they going to get something out of it? I guess not!

If they are really doing that for the artists, music companies should get together, form an “independent union” and then ask for royalties on each mp3 player. The “independent union” could after return the money to artists and cultural organisation around the world to support their development. I would buy that kind of strategy. Universal says they are going to share the money with artists! Yes sure ! 2 or 3 of them! 

This negociation with Universal may be the answer to why we were able to read on the Wal-Mart website that some of the music won't be shareable.

Source: The Associated Press