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Zune deal changes online music landscape

November 13th, 2006 · No Comments

Microsoft has signed a trend-setting deal with Universal Music, which analysts say changes the online music distribution landscape. The software giant has agreed to pay a percentage of each digital music player sold to the music giant, said to be around one dollar a unit, as well as a cut of any download fees, in return for a license to distribute Universal recordings online.
The Zune camp had little option but to agree. Universal views the hardware payback as compensation for revenues lost to illegal digital music distribution. Microsoft says that it will now offer similar terms to other labels, as it tries to secure backing for its ‘ killing’ portable device. More details of Microsoft’s Zune rollout are expected this week.

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