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

What do customers get from this?

[ronanbear]

Microsoft pay Universal money for each Zune sold. Maybe that helps them get a better deal with Universal songs on the Zune Marketplace. The songs will still be $0.99 though.

The other record labels don't get any money so they seem to be losing out.

What about European/rest of world customers? Does this mean that the Zune will be a different price in each country due to licensing requirements? What about not available?

To me this looks like honest customers being charged for music twice. The RIAA has been quite vocal about p2p piracy. Does this mean they won't go after Zune owners? I don't think so.

Both Ways?

[longbot]

So, does this mean that if I own a Zune, that I'm then entitled to pirate enough music to fill it? And if not that much, then where do they intend to draw the line? After all, if I've already effectively paid for the lost profits from pirated material, why would I want to pay twice?