In comments that are set to inflame iPod owners,UMG chairman and CEO Doug Morris said of the ipod ,"These devices are just repositories for stolen music, and they all know it," "So it's time to get paid for it.
The claims were made after Microsoft decided to kiss UMG's backside by agreeing to share revenue from Zune sales with the record label and their artists. Microsoft were into the decision after 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. The deal is set to cause problems for all portable music manufacturers.
It is also set to push up the price of all portable devices as music industry bosses who have been stealing from consumers for years make a bigger grab for revenue from music sales.
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.
Robbie Bach of Microsft is a former analyst now in charge of Microsoft's newest entertainment products, the Xbox and the Zune.
According to the Seattle Times Robbie Bach as the President of Microsoft's Entertainment and Devices Division has an inside perspective of the business churning away beneath the gadgets and games.
