Are You Ready To Pay A Universal iPod Tax?
Nov 29th, 2006 | By James Lewin | Category: Digital Music, iPods & Portable Media Players 
Universal Music wants you to pay an iPod tax – a royalty fee that would be levied on every iPod sold.
Universal recently cut a deal with Microsoft to get a cut of the sales of the Zune portable music player in exchange for closer ties with the label. The move raised concerns that it could lead to higher prices for portable media players, as manufacturers are forced to share profits with the major record labels in order to get access to content.
The company now wants to get a similar deal signed with Apple Computer.
‚ÄúIt would be a nice idea,” Universal Music Group Chief Executive Doug Morris said. “We have a negotiation coming up not too far. I don‚Äôt see why we wouldn‚Äôt do that.‚Äù
Earlier in the year, Morris said that “These devices are just repositories for stolen music, and they all know it. So it’s time to get paid for it.”
Universal’s bargaining power may be tempered by the failure of the Zune to capitalize on its pre-launch buzz.
In related news, Morris predicts that 2007 would be its biggest year ever.
“I think that next year we’re going to have our best year,” he said at the Reuters Media Summit in New York. “I think our revenues and our profits will be the best we’ve ever had.”
via TechWhack News
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