Microsoft has announced that it has struck a deal to deliver to its Zune store music from the Universal Music Group. The deal will give Universal a cut of every Zune player sold. This arrangement is a departure from the Apple standard that only pays studios per song sold, with the studios getting no cut of the electronics.
Universal is expected to receive roughly $1 per $250 player sold. It has stated that its artists will receive half of the profit it yields from each device. Universal will also receive a percentage per track sold.
Well played Microsoft. Money makes the world go round, and everyone has a price. It appears that MS is so eager to beat Apple at the digital audio game, that it’s even willing to forgo large chunks of profit to do so.
Microsoft Strikes Deal for Music [NY Times]