Universal Music Group Seeks Music Tax from Apple
December 1, 2006 3:27 PM
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Analysts expect more music studios to follow
Apple may have to pay royalties in 2007 for every iPod shipped in 2007 if Universal Music Group successfully negotiates an agreement with Apple. Earlier this year,
Universal had struck a deal with Microsoft and its Zune portable music player
. Microsoft would pay royalty fees for every song downloaded by a user and every Zune player sold. Similar to a tax, this contract was definitely a big win for Universal and the music industry.
Now, Universal is indicating that it
wants to have the same contract setup with Apple
too. According to Universal's chief executive Doug Morris, he is already communicating with Apple about the possibility of an agreement. Analysts are uncertain about Apple's decision but based on the outcome Universal had with industry giant Microsoft, it is likely that the situation between Universal and Apple will be coming out the same.
report, Morris said "it would be a nice idea. We have a negotiation coming up not too far. I don't see why we wouldn't do that... but maybe not in the same way. The Zune (deal) was an amazingly interesting exercise, to end up with a piece of technology."
It will be certainly interesting to see the outcome that Universal has with Apple, considering that Apple leads the number spot for portable music players. The iPod is such a staple of the portable music industry scene that it was certainly difficult for Universal to ignore. Other major music studios and labels may end up seeking similar negotiations
This article is over a month old, voting and posting comments is disabled
12/1/2006 8:58:16 PM
Whilst I may ordinarily be a pro-PC and anti-Apple sorta guy, I really hope Apple do the right thing for the whole industry and don't give in to this music-industry enforced "MP3 player tax". If Apple do give in to it, then it will be a serious step backwards in legal digital-music adoption.
When will record companies realise that they are not in charge any more, and so stop trying to make us pay extra for our music? I don't mind paying for the music I enjoy listening to, but there's no way I'll pay extra for it in one format or another, or because I may be playing it on a PMP.
The only end result of extra charges or taxes either on individual music tracks or on the hardware used to play them, will be more people downloading the music illegally.
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