The AP on The Doug Morris Hardliner Stance
The Associated Press offers a profile of Universal Music Grou chief Doug Morris and his hardliner position concerning licensing. In contrast to most portrayals as a lone renegade, this one shows a more accurate scenario. Even though other label heads aren't acting so tough, they're more than happy to let Morris do their dirty work.
"Morris has already suggested, albeit guardedly, that his next target will be iPod-maker and No. 1 online music retailer Apple Inc. With Apple's licensing deal to sell Universal music on iTunes set to expire in May, Morris said, 'there might be other ways to get paid.' Speculation in the industry is that he'll seek a slice of iPod sales. Apple declined comment. Universal's upcoming negotiations with Apple could set the tone for the rest of the recording industry.But Morris says he doesn't know if he's prepared to pull Universal's music from iTunes to get a cut of iPod sales. 'I wouldn't want to draw a line in the sand,' he said. Last fall, Morris threatened not to license Universal music to Microsoft just days before it was scheduled to launch its own online music store and its Zune digital music player. In response, the software company coughed up a royalty of just over a dollar for every Zune sold and paid a licensing fee for the right to sell Universal music. Microsoft extended the same terms to other labels, a move that led Edgar Bronfman Jr., chairman and CEO of Warner Music Group, to tell Wall Street analysts that it took a strong stand by the industry leader to make the deal happen."
A licensing fee for the right to sell a label's music? Kind of like personal seat licenses created by professional football teams to extract even more money for their fans.
Music Groups