Now this is an interesting bit of news. I am assuming you read the concept so to jump right in.
Does this really matter? Apple has sold 70 million iPod’s - so if Uni had this deal with Apple, that’s 70 million to Uni and if reports are true, 35 million will be paid to artists (not sure how they will calculate but…). 35 Million is no game changer. don’t get me wrong, I would like 35 million - but change the landscape for the industry, unlikely. There are a couple interesting things to focus on for the future:
1) Will Apple in the next round buy into this concept?
2) This is some Pandora’s box MSFT opened up - now they will have to pay the other majors, the indies(?) - but what about the MPAA, TV, Producers - where does it stop? Future versions of the Zune will not be about ‘music’ it will be about content.
3) How will mobile phone makers respond. With 600+ mobile phones sold a year (give or take), there real money can be made by the music business by getting their fee on Mp3 phones (as they take market share). problem is that the industry tried to get the carrier/handsets to pay for DRM licensing (at the tune of a $1 a unit) and the industry said no f-ing way.
4) Should MSFT pay Uni for this. Now I think it is a win for Uni (short term at the very least) but from a ‘moral’ perspective - Should Uni be paid for an MP3 player? Does Panasonic pay Universal Home Video for a DVD player?
This is a fascinating topic and one where I have to say kudos to Universal and too bad for MSFT - I can’t wait to see how Apple deals with this…
November 9, 2006 at 6:54 pm
I think this deal is a clever piece of judo by Microsoft. They become more friendly to the record companies than Apple currently is, and they cause the record companies to seek the same deal from Apple. Which hurts Apple much more than it hurts Microsoft, because it aims more directly at Apple’s business model and business situation. See my post on the subject here: http://www.mathoda.com/archives/86