Microsoft To Give A Cut Of Every Zune Sold To The Recording Industry -- Though It's Not Clear Why
from the how-things-evolve dept
While some folks (especially those at the EFF) have been pushing for some sort of compulsory licensing model for music, and others have pushed for a Canada-style plan of taxing blank media to give to the entertainment industry. However, it looks like Microsoft and Universal Music decided to cut out the government middleman and have come to an agreement to give Universal Music a cut of every Zune device sold. It's just like the tax on blank media, but without the government in the middle. The Zune, of course, is Microsoft's new attempt at an "iPod killer," though there are questions about how successful it will really be. It's not clear how much Universal Music gets, but it's more than $1 per device, and they promise to give half of all money received to musicians -- though, they don't say how they'll determine who gets what. The company will still get a piece of every piece of music sold for the Zune as well. While the deal is just with Universal Music, Microsoft has said they'll offer the same terms to "the rest of the industry" as well. While the NY Times piece talks about how "rare" this move is, it's really not all that different than the deal that Universal Music and others struck with YouTube a few weeks ago (other than the fact that that deal was all equity, none of which needs to be shared with artists).Either way, this raises the question of whether or not this is the "new" business model for the entertainment industry, where they somehow come to agreements with consumer electronics/technology/service providers to simply get a cut of revenue. It's an interesting model that actually does play into the idea that the content helps to promote the sale of the devices, but it also raises a lot of questions. While Microsoft has said that others are free to join in on the same terms as well, that's obviously limited to the major players. What about the indie labels? Microsoft isn't going to want to cut deals with all of them, nor should they. What about those musicians who just release music to the world directly? Should Microsoft offer them deals as well? It makes for a difficult situation that is based on the state of the content world today -- not where it will be in the future. It's also not at all clear why Microsoft did this, other than it may have been the only way to get Universal Music to offer songs in the download store. With Google/YouTube, the deal was obviously to get away from the lawsuit risk -- but Microsoft isn't going to get sued for selling a handheld entertainment device (especially with all of the DRM it includes). About the only reason Microsoft would do this was because the recording industry just wasn't getting behind Zune and Microsoft was starting to get desperate.
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Just because you dont like it.... doesnt mean its bad. To think brown is a design flaw is a declaration of ignorance to your consumers.
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I like comment #2...
I'm researching mp3 players (I intend to buy on this holiday season in hopes of a good deal) and Zune is not even my radar. I don't feel like having to wonder if (insert mp3 file) will play or not on it. Creative is looking better and better.
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The interface is slightly worse than the Win XP one, though. Still, it does the basi job of managing songs, albums and playlists through a clunky but usable interface.
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Microsoft gives 5%
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http://en.wikipedia.org/wiki/Blank_media_tax#United_States
http://www4.law.cornell.edu/usco de/html/uscode17/usc_sec_17_00001004----000-.html
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This thing HAD possibility...
No way I'm paying those bozos twice, if they are getting some of my $$ for licensing (on purchase of the device) then there is now way in hell I'm putting up w/their DRM shiznit.
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Could this be...
If the RIAA/Music Industry/Government is going to start issuing a music player tax, I think I'd rather have M$ pay for it than me or anyone else.
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Re: Could this be...
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Musician who's been awake for a while...
We need people who will stand up to organizations such as BMI and ASCAP who freely admit they do not forward royalties to the artists based on true spin count. Not only that, they demand sometimes double and triple payment from those who want to broadcast the music, (e.g. such as the % paid at the point of purchase for the CD and the % paid at the point of broadcast when a bar or restaurant has a jukebox)
We need people who will stand up to corporate radio, such as Elliot Spitzer, and end the payola practices still continuing in the industry in the form of iPod's, walkmans and vacations.
We need people who will stand up against Microsoft and the major record labels and tell them it is completely unacceptable to lock out the independent musician from making sound business decisions on not just how their music will be released and marketed, but where they are not permitted to create income points in this "business model" such as this most recent inbreeding move.
I'd be curious to see if any of you have any ideas on how to leverage technology towards the benefit of the individual artists.
Should this post come across a little fuzzy, I may be a wide awake musician, but I'm wide awake with a round of the flu and silence sucks even with a stuffed up nose! ;>)
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Re: Musician who's been awake for a while...
I think the one thing that may be dooming a lot of lesser-known artists is their infatuation with the micropayment system for selling their songs. If nobody has any idea who you are as an artist, you're completely foolish to try and sell off your songs for 99 cents or whatever. Give the song away for free! You remove all barriers from the person downloading your music.
Once it's on their computer, you can get scrobbled, and develop presence on Last FM, and you also potentially can get on their iPod or other MP3-storing device.
If iPod owners are aggravated enough with Universal Music Group, and purchase less UMG albums to fill their iPods with, then obviously they're going to need to fill that space with something else. To me, as a hobbyist musician, that's opportunity.
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Most Music Sucks
Frank never had popularity or air play, but succeeded where many fail, because he gave his fans what they wanted, and maintained a following. He did not treat them as disposable, like many artists today. Save the recycling for garbage.
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Re: Most Music Sucks
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Every label should get in on the action!
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RIAA?
Netflix supports the use of my couch and the consumption of tasty treats. Bloomingdale's and Frito-Lay don't have to pay Netflix for that privilege. Come on.
There's a really easy model for paying labels and artists for music sales: paying them for music sales.
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This is about Apple
If the Zune takes off then when it comes time to negotiate with Apple again labels will demand this from them as well which hurts apple way more than it does MS.
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Absolute Disgust!
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