Universal Music CEO: iPod owners are thieves Red Hot Chili Peppers, QOTSA, T.I. Rock For Zune November 10, 2006, 5:05 PM ET Jonathan Cohen and Brian Garrity, N.Y. The Red Hot Chili Peppers, Queens Of The Stone Age and T.I. will play free shows Monday (Nov. 13) to celebrate the launch of Microsoft's new Zune digital audio player. The Peppers will play in Los Angeles, while QOTSA will perform in New York and T.I. will appear in Atlanta. Venues will be announced on Monday by local blogs and media. In addition, Lupe Fiasco will play at 401 Michigan Ave. in Chicago, while Secret Machines will play at Seattle's West Lake Plaza. The Morgan Heritage Band and Richie Spice are booked for a Zune gig in Miami. Yesterday, Microsoft agreed to share revenue from Zune sales with record labels and artists. Forcing the issue was Universal Music Group, which at deadline is the only label named in the program. UMG refused to license its music to the Zune unless it could receive a percentage of each device sold, in addition to standard music licensing fees for downloads and subscriptions. "These devices are just repositories for stolen music, and they all know it," UMG chairman/CEO Doug Morris says. "So it's time to get paid for it." Microsoft is working with all major and independent labels to establish similar revenue-sharing agreements. According to published reports, UMG is expected to receive more than $1 for each $250 device and sources at UMG have confirmed that half of all the proceeds from the device's sales will be shared equally among all its artists
has some truth to it. I know lots of people who religously collect records, buy cd's, and pay for their music. However, there are way more people out there that fire up limewire and download ....
What a freakin scam. Great interview with Pink Floyd manager Peter Jenner explaining the real situation. May not be safe for work due to language.
i try to walk the line. i download my share of music, but i also make a conscious effort to purchase a couple cd's a month. if im buying cd's though, i usually buy indie label or local stuff rather than major labels. they need the $$$ more.
Well.... I don't have an iPod, but my computer plays music, and I can pretty well guarantee that anyone who has an iPod also has a computer to which they download music. Therefore, shouldn't Universal Music et al get money for every computer sold? And since I don't have an iPod, I tend to burn the music I download to a blank CD. Shouldn't Universal Music et al get money for every blank CD sold? Granted, I only download legally, but that distinction isn't being made by the Universal Music guy, so I guess that part doesn't matter.
I will be so glad when the industry finally implodes in upon itself. What a waste. Interestingly enough, the Barenaked Ladies probably are using the new model that most artists will go to eventually. They have a management company that handles everything for them. BL records and pays for making their own music. They pay for the cost of recording, mastering, artwork...you name it. The management company negotiates on their behalf for distribution, performances, television show tie-ins (songs on the OC, etc), commercials, merchandising, etc. and takes an across-the-board 10 or 15 percent cut of everything. They don't make money unless the artist makes money. Since you can make a really good record for under $20k now, financing yourself is really just a business matter. And losing 10 percent of everything to a management company is a LOT better than getting 1 percent of your sales with a label and then being responsible for everything else on your own - performance, merchandise, etc. The RIAA is antiquated and just waiting for the next big thing to come along before it fades into obscurity.
I didn't realize they were doing that now. I noticed their newest album didn't have a major label logo on it, but I didn't know what that was all about. I just saw BNL this past weekend in Austin, by the way.
Below is where I first saw the article and got the title. The iPod reference is gratuitous and may even in fact be erroneous, if iPod users pay most of the music from iTunes. FWIW. Now users of the less expensive MP3 players ... http://www.boingboing.net/2006/11/13/universal_music_ceo_.html Universal Music CEO: iPod owners are thieves The CEO of Universal Music has called iPod owners thieves. In explaining that Universal required Microsoft to pay it vig on the sale of each Zune, Doug Morris said, "These devices are just repositories for stolen music, and they all know it."
How was the show? I really wanted to go. Saw them back in 1998, and they were awesome! Back to the topic: to call an MP3 player a repository for stolen music (and, by extension, the owner of the player a thief) is questionable logic at best. It much the same as calling all gun owners bank robbers, since bank robbers usually use guns. It's long past time for the record industry to rethink their business model. Insulting your customer base is not a brilliant marketing strategy.
I recall that Master P made most of his money because he took a Distribution Deal rather than the ordinary deal Rocket River
I have about 40 gigs so far of music on my I-Pod or compter. None of it is stolen. I have bought the downloads for about half of it, or the other half is from my wife and my CD collection uploaded.
The list is endless: Charging more for a CD than a cassette even though the cost is less for them. Pushing artists with > 65 mins of material to release double albums, and getting nasty if they refuse (Fionna Apple) Flooding the market with albums made up of one single (not released separatedly) and 10 tracks of filler (Afroman, Len) Suppressing creativity in favor of "a sound they want" (ie, copycat whoever just hit big) Payola, destroying radio and shoving horrible phonies like Ashlee Simpson down the world's throat Gunning after customers rather than trying to improve the product - biggest example being the heinous Sony rootkit BS. I download legally, and quit the Napster life once a fair alternative to CDs appeared. I refuse to pay $14 just to roll the dice that I'll like more than 2 or 3 songs on the album. In the 90s, the RI refused to provide that option, so I went with Napster. Once iTunes and the such came about, no more need. At this point, I'm only purchasing discs from a very select handful of artists (about 2 or 3 albums a year). Evan
It was very cold, but also very good. It was my third time to see them. My wife is a huge fan (as am I, though I'm not quite as big a fan as she is), so we go every time they get anywhere nearby. I was a little disappointed to discover that the Backyard is now surrounded by a very large shopping center, though. That sounds like me, too. Of course, even when I buy a full album, I'll often get it on iTunes and pay $10 rather than $14 or more.