Printed from http://www.electronista.com

Microsoft to pay Universal for every Zune sold

updated 08:45 am EST, Thu November 9, 2006

MS Pays Universal for Zune

Microsoft has entered into a controversial agreement to pay Universal a royalty fee for every Zune player sold, Reuters reports. While neither Microsoft nor Universal has publicly revealed the amount per player, the music label indicated that it believed it had a stake in the Zune's success.

"We felt that any business that's built on the bedrock of music we should share in," Universal chief Doug Morris says.

Significantly, the deal is not directly linked to content shipped with the player: its preloaded music is provided through music labels with no clear connection to Universal, such as Sub Pop and V2, indicating that Universal no longer feels satisfied with music sales themselves. Microsoft is reportedly in early discussions with other labels for similar fees. The change in approach towards music revenue may have future ramifications for Apple, whose deals with music labels have so far extended only to profits from iTunes content sales and have not affected iPod hardware.



By Electronista Staff
Post tools:

TAGS :

toggle

Comments

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

Sponsor

Recent Reviews

IDrive cloud backup and sync service

There are a lot of cloud services out there, and nearly all of them can be used for backing up key files and folders. A few dedicated ...

Asus Chromebook C300

When Chromebooks hit the market back in 2011, consumers didn't know what to do with them. The low-cost laptops, powered by Google's Ch ...

Plantronics BackBeat Pro Bluetooth headphones

Looking for a pair of headphones that can do everything a user requires is a task that can take some study. Trying to decide on in-ear ...

Sponsor

toggle

Most Commented

 
toggle

Popular News