BEIJING,
Nov. 9 (Xinhuanet) -- Microsoft Corp has struck a deal with Universal Music to
pay Universal Music Group a fee for each new Zune digital music player it sells
when the iPod rival launches next week, the companies said on Thursday.
Under the deal, Universal will receive a payment for
every Zune player sold, in exchange for which Universal will provide more access
to artists and rights to music.
Chris Stephenson, general manager for global
marketing at Microsoft Entertainment, said the fee was not a new idea. "It's not
a new conversation, it's been out there in the industry for a while," he said.
"We've been careful in thinking about it from an economic point of view from day
one."
Zune - capable of playing music and video and
displaying photos - was first announced by Microsoft on Sept. 14, and is
scheduled for release in U.S. stores on Nov. 14. It is Microsoft's attempt to
compete with Apple Computer Inc.'s market-leading iPod player and iTunes music
service.
Microsoft is hoping to differentiate itself from the
iPod by including wireless technology to let people share some of their favorite
songs, playlists or pictures with other Zune users who are close by.
However, Microsoft is facing a tough competitor in
Apple, which has sold more than 67.6 million iPods since its introduction in
October 2001. Jupiter Research is expecting iPod to retain its dominance for at
least the next 12 months to 18 months.
Microsoft's 30-gigabyte Zune will launch at a retail
price of 249.99 U.S. dollars with songs available for download at the Zune
Marketplace service at 99 cents each.
(Agencies)
