Universal Music Group Seeks Music Tax from Apple
December 1, 2006 3:27 PM
comment(s) - last by
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 10:02:51 PM
Maybe at first...
But given that other manufactures are complying with the request (Microsoft) this would just mean the entire music collection would only be available on Zune and CD... (Excluding of course Napster, Yahoo, Rapsody... any of the subscription services...)
It may hurt them at first, but which will be hurt more? What good is that awesome iPod if you cannot get music for it.
12/1/2006 11:09:48 PM
Hmm, given that 93% of music sold this year was on CD and only 5% from the iTMS, Apple has a long time to go before worrying about Zune Marketplace threatening them.
In fact, Microsoft has more to worry from Apple given that Apple has 8% marketshare in the US, and growing faster than the Zune is...
"Young lady, in this house we obey the laws of thermodynamics!" -- Homer Simpson
Universal to Take a Cut of Zune Sales
November 9, 2006, 1:28 PM
WebOS Class Action Settlement Costs HP $57 Million
April 1, 2014, 10:22 AM
IBM Workers Strike Over Terms of Deal That Will Have Them Working for Lenovo
March 6, 2014, 9:29 AM
Google Picking Up Artificial Intelligence Company "DeepMind" for $400 Million
January 27, 2014, 9:25 AM
Quick Note: Qualcomm Grabs up Palm, IPAQ, and Bitfone Patent Portfolio from HP
January 24, 2014, 9:18 AM
Verizon Buys Intel Media OnCue Cloud TV assets
January 21, 2014, 10:26 AM
Google's First Asian Data Centers Now Operational
December 11, 2013, 8:50 AM
Most Popular Articles
Cities to Carpoolers: Sharing Your Car is Illegal, We Will Seize Your Cars
April 4, 2014, 9:17 PM
Taiwan's AOU Claims to Have World's Highest-Res. OLED Smartphone Display
April 11, 2014, 1:44 PM
Navy Prepares for Historic First Live Test of a Rail Gun at Sea in 2016
April 9, 2014, 2:06 PM
It's Very Likely Neanderthals and Humans Had Sex, Produced Offspring
April 10, 2014, 8:40 PM
Cops at Historically Troubled LAPD are Sabotaging Digital Recording Devices
April 9, 2014, 11:10 PM
Latest Blog Posts
Facebook Aims to Provide Internet to "Every Person in the World" with Drones, Satellites
Apr 1, 2014, 10:20 AM
Retail Mobile Sites Experience Outages in Light of Simplexity's Bankruptcy
Mar 14, 2014, 8:48 AM
Tesla vs. BMW: Who Has the Safer EV?
Feb 1, 2014, 2:56 PM
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
Global Cyber Espionage Concerns Reveal Growing Cyber Armies
Nov 29, 2013, 11:04 AM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information