Zune Profits Go To Record Label

genegeek writes, "The New York Times reports that Microsoft has a new deal with Universal to share profits from Zune player sales. David Geffen, the media omniboss, is quoted: 'Each of these devices is used to store unpaid-for material...' The new business rationale is that stolen music should be paid for by profit sharing of newly sold Zune music players. Does that mean if you are not stealing music, you should get a discount on the players? Universal expects a similar deal from Apple when their current contract expires." Reader Gallenod adds, "Microsoft appears willing to spend millions and defer any potential profitability of the Zune simply to weaken Apple's bargaining power with recording companies and set a precedent for hardware manufacturers paying music companies."

Here's hoping Apple will hold strong

[IAmTheDave]

I can't wait for Apple's contract to come up, and for Steve Jobs, still owning a good 85-90% market share, to bitch-slap these new Zune-happy CEO's to the ground like the little greedy trolls they are.

pissing in the pool

[mgblst]

Ok, who invited Micrsoft, their pissing in the pool again.

Great strategy, if you lose, then wreck it for everyone.

In other news...

[Doctor Memory]

Porsche AG announced it will be sharing part of the profits of its sports-car sales with local police forces everywhere. "It's well-known them por-shees is just too damn fast for us to ketch 'em, so anybody drivin' one is a CRIMINAL!", Sherrif Roscoe P. Coltrane explained.

Therefore ...

[rlp]

Setting: a courtroom somewhere in the US

RIAA Attorney: Your honor, the defendant admits pirating music ...
Defending attorney: Excuse me your honor, but the defendant owns a Zune.
Judge: Case dismissed.

Strategery!

[SnowDog74]

1. MS introduces unprofitable business model to light a fire under Apple's ass.
2. Unprofitable business model sinks Zune (ill-conceived hardware design/UI notwithstanding).
3. MS pulls Zune, retreats to XBOX and Windows Bloatware Caves of Profitability.
4. Non-Existent Zune = Profit???

5. Jobs laughs maniacally. Deadpans, "No," when RIAA attempts feebly to re-negotiate on the basis of a ludicrous business case built on an eleventh-hour all nighter fueled by energy drinks, Chinese takeout and heavy doses of THC.

Lesson to RIAA: When MS strongly encourages you to drink their Kool-Aid, don't.