Zune Profits Go To Record Label

genegeek writes, "The New York Times reports that Microsoft has a new deal with Universal to share profits from Zune player sales. David Geffen, the media omniboss, is quoted: 'Each of these devices is used to store unpaid-for material...' The new business rationale is that stolen music should be paid for by profit sharing of newly sold Zune music players. Does that mean if you are not stealing music, you should get a discount on the players? Universal expects a similar deal from Apple when their current contract expires." Reader Gallenod adds, "Microsoft appears willing to spend millions and defer any potential profitability of the Zune simply to weaken Apple's bargaining power with recording companies and set a precedent for hardware manufacturers paying music companies."

Comments

Great

[AoT]

"set a precedent for hardware manufacturers paying music companies."

Yeah, remind me to thank Microsoft for all this 'innovation' they've done for the customer the next time I'm up in Redmond.

'Each of these devices is used...

[jimstapleton]

'Each of these devices is used to store unpaid-for material...'

Really? That guy is a dipshit (pardon my language, but nothing "softer" is better at describing this)

WTF. /NONE/ of the music on my portable mustic player is or has ever been stolen. I know plenty of people in the same boat. Admittedly none of them are Zune, but that that doesn't make the asshat's claim any less false.

I'd want money from Universal then...

[Incongruity]

They're trying to charge me (indirectly) for stealing their music (which I don't, never have, and never will) -- so I'd want my money back. Greedy bastards. How dare you treat customers like presumed crooks?

What a pantload.

[Rob T Firefly]

So how much will MS be paying all the unsigned bands who are duping their own discs without the "benefit" of a label?

Yeah right...

[twofidyKidd]

"Microsoft appears willing to spend millions and defer any potential profitability of the Zune simply to weaken Apple's bargaining power with recording companies and set a precedent for hardware manufacturers paying music companies."

This will go over like gangbusters with Apple and consumers alike. To think that the record industry will try to leverage a deal with another business with regards to consumer goods (music) is ridiculous. Nevermind the fact that Apple will simply leverage their massive iPod fan base against the labels, customers just won't stand for it. Especially when the market for digital media players is already supported by people who have proven they are willing to pay for music, a label-imposed "tax" on those players to cover "stolen content" won't fly.

What they expect and what they get are different.

[Viewsonic]

This is kind of amusing. So does this mean if we pay a "piracy tax" up front, that we can then pirate music? And how can a music company possibly expect Apple to make some sort of deal like this. Are they going to boycott Apple if they don't? Haha.

On the flipside...

[MrAnnoyanceToYou]

If I'm paying for pirating music before I do so, it's now ethical for me to pirate however much music I want.

The amusing thing here is that the 'prepaid pirating fee' doesn't go anywhere near the artists. Ever. It's just an inter-company corporate bribe. Between monopolistic organisations. Man, can't you feel that capitalistic efficiency?

Not buying one

[Russ Nelson]

Since I'm not buying a Zune, I don't care where Microsoft sends its money.

Apple has no incentive to do this

[sockonafish]

Apple already operates the iTunes Music Store at close to zero profits. It only exists to spur sales of iPods. They're not going to forgo iPod profits to please overly greedy record companies.

Apple has stood up to far less ridiculous demands before, like price increases. They're not going to cave on this one.

Dumbest possible move

[MikeRT]

Microsoft has just done the unthinkable: they have acknowledged some "social responsibility" to police themselves, genuflect before the Altar of Starving Musicians and Aggrieved Businessmen and generally do the bidding of another industry. It's as f$%^ing stupid as a gun manufacturer agreeing to whatever Handgun Control Inc wants in the name of "keeping guns out of criminals' hands."

Policing bad behavior is for the courts. People who make perfectly valid tools don't owe jack to those who are hurt by their misuse. Get a damn grip, Microsoft. You aren't hurting Apple's marketshare, you're hurting your lobbying efforts and things like that.

Nothing like paying twice...

[gillbates]

Under the deal, Universal, the world's largest music corporation, will receive a percentage of both download revenue and digital player sales when the Zune and its related service are introduced next week.

So let me get this straight: you pay Universal when you buy the device, and then you pay them again for the music you load on to it?

What if I never listen to any of Universal's music?

What really strikes me as ridiculous is that Universal's terms seem to imply that even a legitimate music purchase is still piracy .

At this point, the only moral thing to do is to stop buying music. You aren't going to appease the record companies - they'll call you a pirate no matter what. If we all stopping funding the RIAA lawsuits, maybe they would go away.

Cease and desist!

[Opportunist]

So, what this technically tells me is that everyone who buys a Zune already pledges guilty of being a criminal, infringing copyright? Because, well, at least in my country, there should be no punishment without verdict, no (positive) verdict without crime.

So either lift that or I will not even go near a Zune. I am NOT infringing copyright, and anyone who says otherwise should either put proof on the table or face me in court.