December 3 2006

Wow…they really are THAT greedy!

Over a year ago I wrote an entry about how the music companies felt they should get a share of all iPods sold. After that, things went pretty quiet there for awhile, that is until Microsoft released the Zune. It seems Universal Music came to an agreement with Microsoft to receive a fee from every Zune as part of an agreement for their music to be carried in the Zune Marketplace.

According to the Reuters article:

“It would be a nice idea. We have a negotiation coming up not too far. I don’t see why we wouldn’t do that… but maybe not in the same way,” he told the Reuters Media Summit, when asked if Universal would negotiate a royalty fee for the iPod that would be similar to Microsoft’s Zune.

So, because Microsoft needed the music companies behind their new project launch, they set a dangerous precedent. If Steve Jobs says no to the idea over at Apple, Universal, or any other music label for that matter, could pull their support of the iTunes store.

For the life of me I can not figure out how they feel they are entitled to one penny from the sales of Zunes or iPods. Let’s run this down:

– The music companies had nothing to do with research and development.

– They have nothing to do with production.

– They have nothing to do with marketing.

– They do receive royalties on the songs sold.

– There is every chance that the user may never load something from Universal on their player. So they should get money for something they have NOTHING to do with?

I can not see any reason why the music companies should even think they are entitled to one penny from the sale of the players, not a one! I don’t think there is any other larger example out there in this world of just pure, uncontrolled greed.

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