I can’t say that I’m surprised to have come accross this Reuters article indicating that Universal Music Group are indeed openly considering demanding a kickback from Apple for iPod sales.
Universal Music Group Chief Executive Doug Morris said on Tuesday he may try to fashion an iPod royalty fee with Apple Computer Inc. in the next round of negotiations in early 2007.
“It would be a nice idea. We have a negotiation coming up not too far. I don’t see why we wouldn’t do that… but maybe not in the same way,” he told the Reuters Media Summit, when asked if Universal would negotiate a royalty fee for the iPod that would be similar to Microsoft’s Zune.
It seems that one part of Microsoft’s strategic game play with the Zune is coming to fruition. It is going to be very interesting to see how Apple will respond.
If my hypothesis about Microsoft’s deliberate “mistakes” in their Zune strategy have the desired effect on Apple we will see significant growth in consumer awareness and concern about DRM (particularly among non-tech geeks) and increased pressure from record companies for variable pricing of songs in the iTunes store.
Technorati Tags: Zune, Competitive Intelligence.
Forbes is running a piece on the iPod economy. Its very interesting that so much follow-on business has come from such a wonderful little device. I confess that I love my iPod.
It would have been neat but perhaps a bit of a surprise to see Podcasting get a reference.
I am a bit surprised that Griffin Technology did not get a reference in the little iPod economy slide show. Theyre the people that make the iTrip, which allows one to listen to the iPod over the radio in the car and make his daily commute something less than a living hell by listening to The Daily Source Code and Slashdot Review, among others; the iTalk, which allows one to record random audio notes to self on the iPod throughout the day and the RadioSHARK, which if the damn thing ever came off back order would allow one to record over-the-air radio broadcasts via the home computer for time-shifting via the iPod. I think Griffin are a great example of an entrepreneurial company finding a niche and addressing it really well with quality products that extend the functionality and reflect the qualities of the product theyre enhancing. Its clear that Griffin have endeavored to emulate the look, feel, simplicity and general quality of the iPod itself. (Hello, black iTrip for the U2 iPod!)
So it seems sales of Guiness are down 6 percent in Ireland. According to this article the CEO of company that owns the brewer attributes the drop in sales to males in their key 21 – 25 year old demographic saving up their money to buy iPods.
The tech and gadget press seem a bit eager to jump on exectuives saying dumb things about consumer technology, because this piece from the BBC addresses some of what are likely to be the more relevant issues for the drop in sales. Specifically the smoking ban that went into place in Ireland at the end of March, which also applies to pubs.
I was in Dublin for a few days a few months ago, and I have to say that the smoking ban made for some very interesting social developments, well beyond even those I had observed in California or New York City. When someone at a pub in Ireland wants to step outside to have a smoke, they place a coaster on top of their pint and head on out. Even if every member of their party goes out for a smoke, the other patrons seem to respect this. Nobody messes with their drinks, nobody steals their seats. I was really amazed since in Washington bar patrons barely respect the space you currently occupy.
