November 8, 2006 9:20 AM PST

Microsoft strikes deal for music

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In a rare move, Microsoft says it agreed to pay a percentage of the sales of its new portable media player to the Universal Music Group.
The New York Times

The story "Microsoft strikes deal for music" published November 8, 2006 at 9:20 AM is no longer available on CNET News.

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Just one more reason
why I'll never buy a Zune.

I won't pay for the music I buy and then pay the music companies
again when I buy a player. That's double dipping and I won't
support it.
Posted by shadowself (202 comments )
Reply Link Flag
Or&
&to put it another way, it is an excuse to uses P2P to acquire
music, since, having technically paid for it when I purchased my
player, I am now free to rationalize away any copyright concerns.
Posted by DeusExMachina (516 comments )
Link Flag
This is the wrong way
Selling mp3's online is a great way for smaller labels to reach a relatively large audience. We see net-labels growing and I think it's a good thing. There is lots of great music out there being released this way.

I don't think a deal like the one in this case would ever be made with any other company than one of the biggest. Only the big and existing companies will benefit from this.
Posted by huddie klein (70 comments )
Reply Link Flag
Royalty for all, not just some
I agree, this is the wrong way to do this. I can accept the idea that this royalty is similar to the one levied on blank cassette tape and music CD-Rs, but it should be divided among all music distributors, not just the big guns that can go head-to-head with Microsoft and negotiate a sweetheart deal.
Posted by C.Schroeder (125 comments )
Link Flag
Two criminals in the same room
One a convicted felon, the other should be.
Posted by Microsoft_Facts (109 comments )
Reply Link Flag
Greed in the music industry
"Universal said it was only fair to receive payment on devices that may be repositories for stolen music."

WFT?! Are you kidding me? Why does the music industry think it's owed something? The movie industry isn't given anything from the sales of DVD player or Hi-Def TVs.

Maybe the mainstream music industry should consider that the reason they are failing is because of their own greed and incompetence.
Posted by toosday (343 comments )
Reply Link Flag
What will they want next?
So the music industry now want a cut of every portable music
player. Does this mean they want a cut of every cell phone and
computer sold also?
What's up with the NY Times and the fan-friendly notion? The
writer cannot be serious that he actually believes this deal
makes the Zune fan-friendly. As if that's an important
consideration for consumers anyhow.
"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."
Posted by canettijazz (43 comments )
Reply Link Flag
Duh! The Walmart syndrome!
Hey, we'll give you a cut of our profits... until we have yet
another monopoly and then when you're over a barrel with your
pants down we'll REALLY stick it to you! This isn't going to be
pretty folks.

It's a smart business move on Micro$oft's part. Walmart did the
same thing.

In Walmarts case, they strangled small business to death with
low prices and at the same time made tremendous demands of
manufacturers to cut THEIR costs. Now that they've driven
everyone else out of business the prices are going UP and the
quality is at the very bottom, but the manufacturers are left
selling to the only game left in town at bottom dollar. So who
wins? We get to buy cheap crap for more money that Walmart
gets to stick in their pockets!

oh I like this one too:
Morris said Wednesday night. "It can only work if one doesn't try
and take advantage of the other, and so far we've come out on
the short end."

Oh yeah, YOU'VE got the short end? WE have to listen to that
garbage you're trying to pass off as music! I haven't seen anyone
from the recording industry lift a finger to advance
technologically. They want OTHER companies to invest time and
money to figure it out and then give them a piece of their sales
(notice I said sales, not profits) on top of licensing fees!
Posted by rhett121 (73 comments )
Reply Link Flag
New verb released: to zune, ex: "zune you", "zune off", "we're so zuned"
Microsoft released the word "zune" and another crappy MP3 player
today, in yet another attempt to zune Apple and the iPod.
Teenagers across America reacted positively to the announcement.
Sally Jeffers, a high school student from Brattenwurz, Wisconsin is
glad that she can tell a friend or teacher to "zune off" without
risking a referral to the vice principal's office. Jim Bob Beauchamp,
of Lafayette Parish, Lousiana said "It don't sound quite as good
when you say let's go get zuned up after the football game, but at
least mama won't know what I'm talkin' 'bout."
Posted by Keith X (13 comments )
Reply Link Flag
Music Industry & Zune Wireless Sharing
It's a safe bet that the music industry is responsible for the fact that Zune wireless sharing is limited to 3-days/3-plays.

As XM radio found out, when the music industry doesn't like your hardware, your company gets sued.

Wireless sharing is an excellent concept, turned into something so restrictive that it's meaningless.
Posted by john55440 (1021 comments )
Reply Link Flag
Well...
Since music is stolen probably more than it is purchased. I think it is far that the studio's and more importantly the artists get a small amount from each music player sold. However, this should stop all lawsuites because now they music industry is being paid for the stolen music.

This is what they should have been doing from the start. Since MP3 players caused most of the music theft in the digital world they should have been insisting on a small amount from each player sale and then just skipped the law suites.

The problem is that once this door is opened, like TV channels they are going to keep wanting more and more and more. Greed will take over and that is what's going to cause a problem. I think Microsoft just opened Pandora's box. Who would have guessed that a snake could open a box.

Robert
Posted by Heebee Jeebies (633 comments )
Reply Link Flag
I agree
this is just funny that the music industry can't make an evolution since CDs.

Many reasons combined are causing the music industry to suffer. One is that they were charging to much to begin with: I remember buying many $30 (CAD) for CDs back in the day. I also had to repurchase my music collection to upgrade it to CD (re-buying the music I already owned #$^@Q#$!!!!),

Better yet: the advanced ability for CDs to scratch (much like records OR even tapes that jammed and having tape spill everywhere).
REPURCHASE $$$
(now I back it up, listen to the burn and keep the original safely sealed)

Music Industry also concentrates on making bad music: one hit wonders, catchy annoying songs, and filler albums (honestly is there any reason to purchase the entire album if you only want to listen to the one good song.)

NOW the want to tax the only reason that people still buy music.

In a industry were they used to distribute, now they can upload to songs and let someone else do it. Something that someone else came up with but now they want the cut. FOR DOING WHAT!!!

Artist make the songs.
(well some of them do everything is starting to sound as annoying as the commercial songs in Demolition Man)

that's my rant, 'nuff' said
Posted by ColdMast (188 comments )
Reply Link Flag
the music industry is the one stealing.
I bought 4 albums this year on release dates, 2 of them I would have returned if I listened to them first! (I'm talking to you Three Days Grace [filler -everything sounds the same] and Hoobastank [filler -no 'cool' songs past the intro])
Posted by ColdMast (188 comments )
Reply Link Flag
You're Missing the victim in piracy...
So everyone thinks the industry charges too much for CDs (they do), and that artists make too much money as it is (they do). But you're often missing the real victim when you download.

The studio workers. Not the LABEL workers- the guys who work the studio. The recording engineers, session musicians, many producers. The artists make their REAL dough touring. The labels make their money off the artists. The Studio guys get paid by the labels and artists....but they don't get paid if the CD doesn't sell. No session musician gets paid when a touring musician goes on tour.

Concerts are WAY over priced. The big dogs have too much control. I agree with that, however- you're not getting the full picture.

Of the $15 you pay for a CD-- a HUGE chunk goes to retail and distribution. Then that small amount gets passed to the studios and musicians and such. Most artists who sing and write their own tunes- might make $1 per CD. 5 guys in a band? $0.20 per CD sold. Platinum record? You made $200,000. That's a damn good year, but most people dont' sell that many records.
Posted by grissomb (79 comments )
Reply Link Flag
Darn right
Recording Engineers are the ones with the real talent, they actually have to make the sound passable.

But how often does a big wig (label) take a pay cut. They get all the cash from the Piracy taxes anyways because their not making the same money when CDs came out and everyone had to repurchase the music, let me know when the lawsuits and taxes actually end up to the people with the talent.

But hey were living in a world where Fergalicious is going to make to #1 on the Billboard charts (no offense to fans).

Reminds me of The Simpsons boy-band episode
Posted by ColdMast (188 comments )
Link Flag
 

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