Universal Music Group (UMG) CEO Doug Morris talks tough, but more importantly acts tough, about the need for record companies to get paid for the ubiquitous use of music content on the Internet. After nearly suing YouTube for UMG music that appeared in user-generated videos (UMG instead took a stake in YouTube right before its acquisition by Google), UMG turned around and did sue Grouper and Bolt for their alleged unauthorized use of UMG music.
Not only that, but UMG also then took on media and Internet giant News Corp. when it sued MySpace on basically the same grounds. According to this AP article, the next target in UMG’s and Morris’ war against online music moochers is Apple.
Morris has already suggested, albeit guardedly, that his next target will be iPod-maker and No. 1 online music retailer Apple. With Apple’s licensing deal to sell Universal music on iTunes set to expire in May, Morris says, “There might be other ways to get paid.”
Speculation in the industry is that he’ll seek a slice of iPod sales. Apple declined to 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 says.
Any confrontation between UMG and Apple would be a fun show, that’s for sure. Apple’s unbending will combined with Morris’ bulldog nature could provide grand entertainment for intellectual property lawyers.
And the 67 year-old Morris doesn’t really care if he goes down in flames as he strafes the giants of the business. In fact, he calls himself a kamikaze.
“It’s just the position you get put in, where you’re either going to succumb to it, and say, ‘Fine, that’s OK, yeah, put your advertisements next to our videos, we don’t care,’ or you’re going to say, ‘Hey, this isn’t fair,’” says Morris.Posted by Cynthia Brumfield at 8:16 AM | Print | Comments (0)
“I’m going to be a kamikaze pilot until that’s all straightened out.”
After a few false starts, mail-order movie rental business Netflix has finally launched an Internet delivery option. The DVD rental giant will give its subscribers at no charge streaming access to around 1,000 movie and TV show titles.
Netflix opted for the streaming mode of delivery to provide “instant gratification” to its customers, who must first download a piece of software, or a client, to be able to view the videos. Subscribers who pay $18 per month will get 18 hours of free PC-based (no Macs yet because the service uses Windows DRM) video access, while customers who spend less will receive more hours, and customers who spend more will receive more hours.
It’s a nifty marketing gimmick for Netflix, which, despite its still-solid success, is hitting a wall in gaining new customers. But it’s not a breakthrough in the web-based movie distribution business. After all, it’s just streamed movies over the Internet.
Moreover, Netflix, which rules the DVD rental business despite stiffening competition from a revived Blockbuster, is entering a very crowded marketplace, with Amazon, Apple, Movielink, CinemaNow and a half dozen other serious competitors all vying to become the lead Internet film distributor. Still, Netflix has jumped out of its DVD-only rut and onto the Internet, sparking hopes that the company won’t become a dinosaur left behind by technologically savvier competitors.
Posted by Cynthia Brumfield at 7:20 AM | Print | Comments (0)The iPhone is already drawing scam artists looking to make a quick buck off the hot little gizmo. Although we won’t see an iPhone for sale for at least six months, that’s not stopping phony web sites from pretending to sell it.
I came across a Google ad that promises an iPhone for “half off!” I clicked on the link, and sure enough, the site, which calls itself Half Mania, is selling the iPhone for $250. It even has what looks like an image straight from Apple’s web site to depict the phone.
How does Half Mania claim that it can sell an iPhone for $250? Sponsors subsidize the sale, Half Mania claims, and all you have to do is view advertisements to get your $250 iPhone. How does Half Mania even pretend to have one of these precious babies in stock? Well, I’ll never know because I didn’t proceed to the advertisements.
Let’s hope most consumers out there are aware that the iPhone won’t hit the production floor for months.
Posted by Cynthia Brumfield at 12:14 AM | Print | Comments (0)
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