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VIRTUALISATION A royalty fee for Universal on iPods? Not likely
VIRTUALISATION A royalty fee for Universal on iPods? Not likely | A royalty fee for Universal on iPods? Not likely |
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| by Stan Beer | |
| Saturday, 02 December 2006 | |
  
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Jobs and Apple have already done the hard yards and sold billions of online music tracks through iTunes all over the world, while Zune Marketplace has sold next to nothing in its only market the US. That's why the combined might of Universal and its fellow music industry heavyweights were simply crushed by Jobs when they tried to get Apple to change its pricing model in their last round of negotiations. The recording industry could not get Apple to budge on its downloads pricing, so can anyone seriously suggest that Universal would be successful in getting Apple to give the company a percentage of the profits on its iPod sales? One can imagine the reaction of Jobs to such a proposal. iPod is where Apple makes its money. The strategy of Microsoft by complying with music industry demands for a cut on Zune sales is obviously to try and drive a wedge between the industry and Apple. That might work eventually if Microsoft succeeds in getting a decent marketshare. However, right now Apple rules the roost in legal music downloads and, unlike Microsoft, holds all the cards in any negotiations with music companies. The clear message for Doug Morris and Universal is that their best bet of getting a piece of the action on iPod sales is to buy some Apple shares. {moscomment} |
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