What is Malik labeling a “classic Mafia shakedown: pay us or else”?
Microsoft Corp. agreed to give Vivendi SA's Universal Music Group, considered the world’s largest music company, a cut of sales from its new Zune music player, and iPod competitor, scheduled to go on sale next week.
Bloomberg cites Zune Marketing General Manager Chris Stephenson:
Similar offers have been made to other major labels and some independent record companies…to make it easier to get their support for distributing music in new ways such as sharing between consumers… There are many different models that we are saying to the labels `Hey guys support us, rather than going back to them time and time again, we are saying just be partners with us on this device.
Malik was wrong on Google YouTube (any progress in the 40 pound diet consolation prize?), he is wrong on Zune Universal.
Universal Music’s chairman, Doug Morris noted:
I’m hopeful that technology companies and creative companies will understand how each other’s futures are intertwined. It can only work if one doesn’t try and take advantage of the other, and so far we’ve come out on the short end.The New York Times cited Morris and indicated Universal:
will receive a percentage of both download revenue and digital player sales… the company is expected to receive more than $1 for each $250 device….it would pay half of what it receives on the device to its artists.So, where’s the problem? David Geffen is cited:
It’s a major change for the industry. Each of these devices is used to store unpaid-for material. This way, on top of the material people do pay for, the record companies are getting paid on the devices storing the copied music.