Microsoft and Universal Music Group do Zune deal

MP3 players

zune.jpgMicrosoft and Universal Music Group have struck a deal whereby not only do UMG and their artists get royalties from music sold in the Zune Marketplace, but also a proportion of the sale of the Zune player itself.

Microsoft is also planning to do the same with other music labels and their artists.

“This agreement with Microsoft around Zune is a significant milestone for our company and our artists,” stated Doug Morris, Chairman and CEO, Universal Music Group. “This move demonstrates there can be a win-win situation where consumers have a great experience while labels and artists are also fairly compensated. We applaud Microsoft for its innovative and consumer-friendly Zune store and device.”

Oooh, don’t you love corporate back-rubbing?

It’s an interesting new strategy, so even if the Zune ends up being used to play pirated music, at least the record companies got some cash from it.

Andy Merrett
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