MS Cuts Labels into Zune Sales

I’m pretty conflicted about the news that MS has signed an agreement with Universal Music to share revenue from Zune sales. On the one hand it seems like a great way for MS to guarantee itself access to content from one the music industries largest producers. Given Universal’s size and power its unlikely that other labels wont get in line to license their stuff to the ZUNE store and get a piece of Zune sales as a bonus. On the other hand it highlights just how desperate MS has become in its heavily lampooned bid to ruin the iParty that Apple has enjoyed for the last few years.

There is great coverage out there from both perspectives; for the naysayers, check out Global Nerdy’s take on the Zune shakedown or Om Maliks thoughts on UMG muscling Zune. For a more enthusiastic take on the subject check out Mathew Ingram’s post or El Reg’s rant, neither of which call of the out right destruction of the music industry… Of course you may prefer the more balanced approach of MSM, so here a link to the NY Times article and an AP story is here.