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

Posted November 10, 2006 at 02:47 PM by Doug Berger

Section: News, Audio, Portable Audio, Online Music/Video, Portable Video

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]