Tech Shout!

Microsoft has signed a deal with Universal Music Group, which happens to be the first of its kind. According to this agreement, Universal will get a percentage from all sales of Microsoft’s soon-to-be-released Zune music player. And in return, Universal will give Microsoft’s Zune, rights to its music and artists.

Microsoft is ensuring that Zune gets the best that money can buy, as Zune is Microsoft’s entry into the world of digital music players. Obviously, the first step in the Zune marketing campaign has been the deal with Universal.

Microsoft plans to extend the same deal with other record companies, music publishers and everyone else in the music business. This move by Microsoft has been made in order to ensure that Zune’s music store which will launch along with the player on November 14, 2006 has more than enough music to attract consumers.

Another attractive feature of the Zune music player seems to be the use of wireless technology, which will allow Zune users to share their music with friends who are close by. The friend could hear the tune up to three times over three days, before deciding whether to buy the tune or not.

Microsoft’s deal with Universal and possibly other music companies provides a strong business opportunity for recording companies. Nowadays, a whole lot of music is available online, most of which is illegal. Hence the sale of CDs has reduced. As a result, artists and recording companies do not get their rightful due. All in all, cutting deals with music player companies, in this case, Microsoft will help recording companies get some part of the revenue back.

The launch of Zune is very important to Microsoft, as it will be a challenge to rival Apple’s iPod, which has dominated the portable music player market.