Microsoft To Give A Cut Of Every Zune Sold To The Recording Industry -- Though It's Not Clear Why
from the how-things-evolve dept
Either way, this raises the question of whether or not this is the "new" business model for the entertainment industry, where they somehow come to agreements with consumer electronics/technology/service providers to simply get a cut of revenue. It's an interesting model that actually does play into the idea that the content helps to promote the sale of the devices, but it also raises a lot of questions. While Microsoft has said that others are free to join in on the same terms as well, that's obviously limited to the major players. What about the indie labels? Microsoft isn't going to want to cut deals with all of them, nor should they. What about those musicians who just release music to the world directly? Should Microsoft offer them deals as well? It makes for a difficult situation that is based on the state of the content world today -- not where it will be in the future. It's also not at all clear why Microsoft did this, other than it may have been the only way to get Universal Music to offer songs in the download store. With Google/YouTube, the deal was obviously to get away from the lawsuit risk -- but Microsoft isn't going to get sued for selling a handheld entertainment device (especially with all of the DRM it includes). About the only reason Microsoft would do this was because the recording industry just wasn't getting behind Zune and Microsoft was starting to get desperate.