More is good!! Or is it??

In what some might say raising the stakes in the competition & what some might term as unfair playing grounds, Microsoft has agreed to pay Universal Music a cut in every Zune MP3 player that it sells!! Its not clear how much will Universal Music get on the sale of the $250 MP3 player from Microsoft, which releases in the US next Tuesday, but it can be substantial amounts of $$ if the player takes off well.

Legal music download sites have been known to pay royalties to music companies, but music companies getting royalties in hardware sales is something new, & this might just heat things up a bit when Apple’s contract with Universal expires & re-negotiations take place. In order to keep up with competition & to get music labels to walk down their aisles, other music player & mobile phone manufacturers might just be forced to offer cuts in their hardware sales as well. So, whether this proves out to be a new dimension in music industry or a can of worms that becomes too much to handle, only time will tell!! :cowboy:

Hattip: Pocket-lint