“These devices are just repositories for stolen music, and they all know it. So it’s time to get paid for it.” That’s what Universal Music Group chairman and chief executive Doug Morris told Billboard regarding its decision to shake down Microsoft for a percentage of every Zune music player sold.
Universal refused to license its music to Microsoft unless the latter paid the former a “vig” on each music player sold in addition to standard license fees for downloads and subscriptions. Microsoft agreed to Universal’s terms last Thursday. “Published reports,” according to the Billboard account, indicate that Universal will receive more than US$1 for each US$250 device Microsoft sells. In remarkable beneficence, Universal says that half of its vig receipts will be shared with its artists.
Attitudes like this make clear why the music industry is failing.
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