In a tremendous showing of outreach the CEO and Chairman of Universal Music Group, Doug Morris said “”These devices are just repositories for stolen music, and they all know it, So it’s time to get paid for it.” In reference to portable audio devices like the iPod and Microsoft Zune. Microsoft has folded and agreed to pay Universal money back on every Zune sold. I think it is pretty generous for Universal to call all of their customers thieves and for Microsoft to essentially confirm it. Since I own 4 iPods housing over 12,000 songs, I must be a really really big thief. That or a really good customer. Either way, it is clear that I like music. Which way do you think is a better way to get me, an existing or potential customer, to give you more of my money? Accuse me of theft and charge me against my will, or give me the benefit of the doubt and focus on providing better products and services. I now definitely will not be purchasing a Zune or any UMG music anytime soon.
Update: Om Malik is trying to rally folks to not buy Universal Music for a week in order to demonstrate that there are in fact paying customers out there. Please help out and if you have a blog, throw one of these badges on it for good measure.
technorati tags:zune, microsoft, music, RIAA
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I think it should be pointed out that UMG made this comment, not Microsoft. I’m sure Microsoft is not very pleased with being associated with negative press at the time of launch of the cool Zune. And, as someone who has actually held and used the Zune, it is in fact cool. Don’t dis it ’til you’ve tried it, pal. We’ll be sure to post a picture of you holding your new Zune and enjoying it’s larger screen, easier-to-use UI, and its non-injury causing “scroll wheel” after the holidays! Sucka!
Point taken. It is clear that Microsoft is the underdog in the online music market, a position in which we are not used to seeing them so it is quick to put the blame on them. In order for the Zune Marketplace to be successful, they have to offer equal or better selection than Apple. Since Apple is already entrenched with most music companies and providing them with significant enough sales to have become the 5th largest music retailer in the U.S., Microsoft is going to have to offer special conditions in order to seal these deals. I am sure the hope is that when it comes time for Universal to renegotiate the iTunes store, they are going to ask for a piece of every iPod sold. That either eats into Apple’s profitability or removes Universal from their library. This in and of itself is not problematic and does not reflect poorly on Microsoft. It is the statement by Morris that is troubling. I am sure that MS did not sign off on him saying that their products were repositories of grift, but in constantly caving to the RIAA and these short-sighted dinosaurs that the computer companies are selling out their customers. At some point someone needs to stand up to them and say modify your business model or get out of the way. I personally buy more music online than I did when I bought physical CDs, if these music companies think that iPods and Zunes simply drive piracy, they are completely wrong. They shouldn’t even sell there products through the iTunes store, but they want their cake and to eat it too. At some point we need to stand up against these companies and say I am not a thief and do not treat me like one. It would be nice if Microsoft and Apple would stand up and say the same thing: “Our customers are not crooks.” When they do that, you might see me with a Zune, but until then, I am neither a customer nor a crook.
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[...] So what gives? If I am going to redirect people to the iTunes store, why can’t I get a small percentage? Granted, I may not drive a ton of traffic, maybe none at all, but that is not an expense to Apple, they just don’t have to pay me if I don’t drive any traffic. It must be that I have content on my site with which they don’t agree. Hmmm, I wonder what that could be? Could it be that I posted an entry entitled The Bad: UMG and have a big badge on the site saying that people should “Say no to UMG”. Since Universal Music Group is one of the vendors represented on the iTunes store, it could be considered bad form for iTunes to be affiliated with such rabble-rousers as myself. I wonder if I had posted the article and the badge after being accepted by the affiliate program, would I have been kicked out? I am sure that Apple has the right to say with whom they do business and that I can’t really invoke freedom of speech here, I just wish that they were more forthcoming. The irony of course is that the gist of my post on UMG was slanted toward the fact that I won’t be purchasing the iPod competitor the Zune because of Microsoft’s agreement to pay UMG for their customers’ presumed piracy of music. I just don’t think it is a good thing to be that much in bed with the record companies and I have in the past applauded Apple’s refusing to compromise in their price negotiations with the record industry. Apparently, they cannot be lauded across the board. [...]
[...] The reason that DRM is suddenly relevant to Apple is that the Consumer Ombudsman in Norway has declared that the FairPlay DRM is illegal in that it blocks competitors access to the store and the iPod, and has given Apple a limited amount of time to either remove it, license it to competitors or have the store shut down in Norway. France and Germany have jumped on board as well. This is not the first time that France has made such threats and Apple’s response was decided. They would shut down their store rather than remove the DRM. This according to Jobs’ explanation is easily understood since presumably if Apple changed the DRM the big four companies would withdraw their songs and 90% of the music would be gone from the iTunes Store. The interesting part of Jobs’ statement is the following:”Much of the concern over DRM systems has arisen in European countries. Perhaps those unhappy with the current situation should redirect their energies towards persuading the music companies to sell their music DRM-free. For Europeans, two and a half of the big four music companies are located right in their backyard. The largest, Universal, is 100% owned by Vivendi, a French company. EMI is a British company, and Sony BMG is 50% owned by Bertelsmann, a German company. Convincing them to license their music to Apple and others DRM-free will create a truly interoperable music marketplace. Apple will embrace this wholeheartedly.”Essentially what he is saying is before you point the finger at us, look in your own backyard and your own companies that are driving these decisions. Universal is notoriously firm in their stance regarding DRM, going so far as to call portable media device users crooks call portable media device users crooks and should France actually address the issue with them, it would be welcome. It is interesting that these record companies have standing agreements with multiple online music purveyors and that companies like Microsoft have the same mutual bindings between their device and the media store, but that Apple is the only one taking the heat. I am a fan of iPods and a regular user of the store, but I don’t agree with DRM, I don’t think it stops piracy and it doesn’t help sell music. Hopefully some of this legislation will help squash it. The caveat here though is that despite the fact that Jobs states that he would drop the FairPlay DRM in a “heartbeat”, if the record companies would allow it, there are a number of artists and independent labels that encourage their music to be sold DRM free and have specifically requested it of Apple and yet their songs continue to be sold with DRM. [...]