Microsoft bows to the labels
As SIRIUS did with the S50, Microsoft will be paying a “fee per unit” for each Zune player sold in a new agreement signed with Universal Records yesterday.
Unlike the Zune, Apple does not give a cut of sales of iPods to music companies. It only pays labels for songs sold on its iTunes music store.
“We felt that any business that’s built on the bedrock of music we should share in,” said Doug Morris, chief executive of Universal, owned by French media giant Vivendi.
He did not disclose the amount of the fee for the Zune, which launches next Tuesday.
It appears that SIRIUS’ new approach is to not pay the “fee per unit” on future devices such as the Stiletto.
I firmly believe the use of the Stiletto falls under “fair use”, and that SIRIUS’ existing broadcast license with the labels is more than sufficient.
I’m sure the lawyers will have the last say.
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