Microsoft to pay Universal for every Zune sold
In a move that could have a future impact on Apple, Microsoft has agreed to pay Universal Music Group a fee for each Zune media player it sells. “We felt that any business that’s built on the bedrock of music we should share in,” said Doug Morris, chief executive of Universal, owned by French media giant Vivendi. “We were very early in working with Steve on the launch of the iPod and he’s been a very good partner and done a lot for the industry,” Morris said in response to questions about Universal’s relationship with Apple. “We have a current contract with him and at the end of that I’m sure we’ll negotiate.” Apple currently only has revenue-share deals with record companies for music sold on the iTunes Store, and does not offer a portion of iPod sales to any company.
Update: The New York Times reports that Universal is expected to receive more than $1 for each $250 Zune sold, and that the deal “comes after weeks of tense talks and averts a standoff that might have crippled Microsoft’s attempt to compete against the iPod.” According to the Times report, Universal apparently threatened to not sell its music through the online Zune media store unless Microsoft paid a royalty for each Zune sold.
“Microsoft ultimately had plenty of incentive to make a deal with Universal,” reports the newspaper. “Microsoft is laying a huge wager on the Zune. If it had not struck a deal, it would have been left in the position of trying to mount a credible challenge to the iPod without Universal, which accounts for a third of new albums sold in the United States. Microsoft also stands to benefit by cultivating a fan-friendly image with the notion that artists—not just corporations—will share in the Zune’s sales.”
- Apple in talks to acquire Pinterest rival The Fancy?
- Google intros Nexus 7, Nexus Q as iPad, Apple TV rivals
- Samsung releases app to ease iOS to Galaxy transition
- Apple, Time reach agreement on magazine sales
- Microsoft unveils Xbox SmartGlass; links console to iPad, iPhone
- New HTC handsets face import delay due to Apple
If you have a comment, news tip, advertising inquiry, or coverage request, a question about iPods/iPhones/iPad or accessories, or if you sell or market iPod/iPhone/iPad products or services, read iLounge's Comments + Questions policies before posting, and fully identify yourself if you do. We will delete comments containing advertising, astroturfing, trolling, personal attacks, offensive language, or other objectionable content, then ban and/or publicly identify violators.
- Apple filing reveals executive compensation plans, earnings
- Report: Apple Watch battery life expected to be about 19 hours
- Apple outlines limited HomeKit support for non-HomeKit accessories
- Report: Apple agrees to accept product inspections from Chinese government
- IK Multimedia announces iRig Mic Studio
- NimbleBit announces Apple Watch support for Letterpad
- Apple acquires music analytics firm Semetric
- Apple terminates Crimean developer agreements due to U.S. sanctions
- Apple commemorates Martin Luther King Jr. Day
- iLounge Weekly coming Monday, sign up now
- Lenmar Maven Battery Case for iPhone 6
- STM Studio for iPad Air 2
- VSN Mobil V.360 Camera
- Booq Booqpad for iPad Air 2
- Incipio offGRID Express for iPhone 6
- Incipio Tuxen for iPad Air 2
- Incipio Trestle for iPhone 6 Plus
- Urban Armor Gear Folio Case for iPad Air 2
- ZeroChroma Folio-Slide for iPad Air 2
- Twelve South BookBook for iPhone 6 Plus
- Can I cancel or ‘unsend’ sent iMessages?
- Ten Things You Didn’t Know About Apple’s HomeKit
- Reorganizing files in the iTunes Media Folder
- Exchange text messages between two iPhones with no cellular data plan
- The Booths of the iProducts Marketplace at CES 2015
- Hands-on with CarPlay at CES 2015
- iLounge announces its CES 2015 Best of Show Awards
- Five Things to Watch for at CES 2015
- Last-Minute Holiday Gift Guide for 2014
- Instant Expert: Secrets & Features of iTunes 12