“Universal Music Group Chief Executive Doug Morris said on Tuesday he may try to fashion an iPod royalty fee with Apple Computer Inc. in the next round of negotiations in early 2007,” Reuters reports.
“Universal… was the first major record label to strike an agreement with Microsoft Corp. to receive a fee for every Zune digital media player sold,” Reuters reports.
“‘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,’ he told the Reuters Media Summit,” Reuters reports.
Full article here.
Morris can seek, but he shall not find. Maybe by the end of 2007, the leech will be able to buy a sandwich with all of his accumulated Zune royalties. Steve Jobs holds cards that Microsoft can only dream of holding.
As we wrote on November 9: We’ve been saying for quite awhile that Microsoft seems to want the Zune to fail; the choice brown, the muddled business plan, the crippled Wi-Fi, the hobbled DRM-laden “sharing”, the weak advertising, the fake scroll-wheel, the “uncoolness” of Microsoft, the lack of a compelling price advantage, the lack of video content, etc. But, we couldn’t figure out why Microsoft seems to want the Zune to fail. We thought maybe they needed a tax write-off or they were just mismanaged and/or deluded. But, maybe their “plan” is to set a precedent for the next round of iTunes Store negotiations? Perhaps Microsoft hopes to hurt Apple by trying to force this weird profit sharing on iPods? To share hardware profits with the music labels makes no sense. Did phonograph makers share record player profits with music labels? No. Did Sony share Walkman profits with music labels? No. Do AM/FM radio makers share profits with music labels? No. Do TV makers share profits with TV networks and producers? No.
As we wrote on November 10: As far as Universal demanding the same ludicrous royalty scheme from Apple Computer Inc. to which Microsoft capitulated with Zune: Universal needs Apple a helluva lot more than Apple needs Universal. If Universal doesn’t want to sell music to what will then be in excess of 100 million iPods sold via what will then be a U.S. top five music outlet, Apple’s iTunes Store, then Universal can go pound sand. If Universal makes such a bad decision, they’ll be crawling back to Steve Jobs on their hands and knees within weeks begging for forgiveness. If they want to play hardball with Steve Jobs based on a deal they made with the sleazebag Redmond Zunatics, they should understand that a Jobs fastball thrown straight to the head will sideline them not just from that game, but from many games to come.
Contact Universal Music Group: communications@umusic.com
Related articles:
Microsoft’s Zune selling like snotcakes – November 15, 2006
Universal Music Group CEO calls iPod users thieves – November 11, 2006
Following Zune deal, Universal expected to demand iPod royalties from Apple – November 10, 2006
Microsoft to pay Universal for every Zune sold – November 09, 2006
What a miserable parasite trying to suck the life blood out of Job’s creation. I hope Steve makes an example with him and at this point, Steve is powerful enough to do it.
Is this guy stupid or what?
Does Universal get some money from every Sony stereo sold, that plays Universal CD’s?
Way to negotiate MS! F’n idiots….
Stupidity often accompanies greed.
My oh my…and first post too…not that it means…anything…..much.
When the record labels get a cut of every record player, CD player, cassette deck, etc sold, THEN they can talk to Apple about royalties.
They forced Microsoft into a bad deal, because M$ was desperate to look like they could compete with iPod+iTunes.
Universal greedy … !!!
I paid for all the songs on my iPods, what else do you want?
Do you think I get paid for every illustration I made each time it is used?
I want royalties for every blank sheet of paper! NOT
What next, are the States going to ask the Car manufacturers for a handout every time a car rolls off the assembly line because it may or may not drive on a highway.
MS did what they wanted, they threw a spoiler in there, just to fu@k with the model… If they get away with it we are all screwed on other stuff we use.
I’d like a villa in Tuscany, a beach house in Kauai, a few Ferraris, couple nice thoroughbreds, one or two of those wine cellars with the amazing vaulted ceilings, a staff of 12…
maybe I’ll put that into my next compensation negotiation.
Comment just filed at Universal Music’s contact page:
“I just read about your CEO’s unconscionable attempt to force Apple to pay Universal a royalty for every iPod sold. If Doug Morris goes ahead with this plan, I will boycott every Universal CD, DVD, movie and theme park from that point forward, and I will urge everyone I know to do likewise. It’s bad enough that your CEO believes most of the music on an MP3 player is stolen when surveys have clearly shown that that’s not the case (my own iPod is full of songs copied from the CDs that I’ve purchased over the years and, more frequently lately, tracks purchased and downloaded from iTunes). But to call on a device manufacturer to pay money for every device sold, after having paid money to Universal for every track sold, will further sour your supposed customers on the greed of your company and its leadership, and encourage them to pirate their music rather than acquire it legally. Hey, if they’re paying for it anyways through an iPod surcharge, why not?”
Here’s the form:
http://www.universalstudios.com/homepage/html/contact_us/contact_form.cgi
…though you may need to start here:
http://www.universalstudios.com/homepage/html/contact_us/
What are the odds on 100 million pods by the end of the year? And when is the 2 billion tune?
Universal CEO Doug Morris, obviously an idiot.
Z
What a load of garbage. I tend to believe Microsoft entered into the deal with Universal JUST to get Universal to go after Apple. Microoft has deep pockets (for now, anyway) and knows they can afford to pay Universal a few bucks… But Microsoft also knew if they didn’t agree to pay Universal, Universal would probably not go after Apple…
Microsoft is like one of those knats that keeps flying in your face even afer you swat it away…
In other news:
Hamburger patty companies will soon ask for royalties from the makers of hamburger buns
Car manufacturers will ask for royalties from tire manufacturers.
Window companies will ask for royalties from window cleaner companies.
Toothbrush companies will ask toothpaste manufacturers for a royalty.
and Doug Morris needs more hookers and blow.
two words for ya Dougie:
POUND
SALT
Let’s give him 2 Cents…
Just remember that karma can be a bitch, Doug…
I will begin charging Universal a fee of 10 cents each time I play one of their songs on my iPod. Thanks, Universal.
“The Zune (deal) was an amazingly interesting exercise, to end up with a piece of technology,” he added.
Piece of something……yes.
The day I am forced to pay a record company a royalty on a new iPod purchase is the day I start my torrent downloads 24/7. Nevermind I have all the music I want already. Nevermind the fact that the drivel passed off as music by the Major Labels today is pure shit. Just nevermind. If they stick me because I’m a thief, you can bet I’ll go out and be a thief.
JA! JA!
THAT’S ALL I HAVE FOR UNIVERSAL.
It’s like if the car manufacturers started installing a cardswipe and requiring you to use your debit card to unlock the door every time you wanted to go for a drive.
Or the commercials you may have seen where someone has to use an ATM to get to their bananas or cheese in the fridge. Or open their closet to get to that favorite shirt.
Just have two words for Morris:
NE VER
Why the freak should we pay extorsion fees to Universal becasue my neighbor might have ripped a CD of a Universal artist…
All record companies should be made to pay royalties to users and creators for the privlege of presenting other people’s work.
All of the songs on my iPod come from the iTunes store and from about 25 cds that I actually own. Really this guy is pure jerk.
Maybe he should record his flatulence, release it in about 200,000 variations then demand royalties from all users who have an ass becase they might have similar sounding faltulence.
Maybe Dell, HP, Sony, etc. should start giving Universal a dollar for every computer they sell.
Don’t people use those computers to rip CDs and download from P2P sites?
How many dollars does Universal receive from sales of CDs and other sources excluding online digital sales?
How many dollars does Universal receive from sales of music from iTunes?
How many dollars does Universal receive from sales of music from Zune Marketplace excluding the extortion fee paid by Microsoft?
How many dollars does Universal receive from the extortion fee paid by Microsoft?
How many dollars does Apple receive from the sale of Universal music from iTunes.
How many dollars does Microsoft receive from the sale of Universal music from Zune Marketplace after paying the extortion fee to Universal?
What losses will Apple accrue in actual dollars and percent of net profit if Apple refuses to pay the extortion fee and loses access to Universal?
What losses will Universal accrue in actual dollars and percent of net profit if Universal continues to provide music under the same conditions that currently exist with Apple’s iTunes?
I would like to see some verifiable numbers of profit and loss. I want to see pain and pleasure quantified in greenbacks.
Hey Universal,
K I S S M Y A S S.
m
The end of that phonecall went something like this:
“HAHAHAHAHAHAHAHAHA….. {click}”