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Microsoft strikes deal with Universal, to pay for every Zune sold

by Doug Berger on Nov 10, 2006 at 02:47 PM

Microsoft Zune

Not only is Microsoft prepared to pay hundreds of millions of dollars to market and develop the Zune, but they’ve also struck a deal with Universal Music Group to pay them for every Zune device sold.  The deal was cut clearly in hopes “to have more freedom to allow song-sharing or other promotions” (AP).  In the few days before the Zune launches on November 14th, I wouldn’t be surprised to see Microsoft partnering with others in the music industry.

Kind of ironic that they’re trying to build a reputation on a “damn the man” approach, but still allowing the record industry to control their every move.  Maybe they can learn a thing or two from the YouTube approach - let people do whatever the hell they want, and strike deals with the industry so no-one gets sued.

Apple on the other hand, has no deals with the record industry on the sale of the iPod - only the sale of songs on the iTunes Music Store.  For products that are so much the same, we’ll just have to wait and see which strategy wins in the end.

Read [Yahoo News]

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Comments
  • Ned Kirby said:

    As long as whomever is selling music files for a buck a song people will find ways to steal them.

    The big boys like MSN must convince the major labels to lower the price on music. They have NO distribution costs (sending music is baseically free) and no manufacturing costs. If they sold songs for something closer to a nickel the purchasing of songs would be painless and people would spend MUCH more money. The music player features are second in importance to solving this problem!!!

  • K! said:

    Well, i think if you work in music for a living its kindda depressing that you can get it for less than a candy, that meaning your musical creation…
    Sad world we live in, we care more about zunes than death… LOL!

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