Only a day after receiving strong reviews from some noted technology critics, Microsoft has made a bold announcement. The wanna be iPod killer just might have set a precedent by setting forth a revenue share agreement with Universal Music, the world's largest music company and home to acts including omnipresent U2 and rap impresario Jay-Z. Under the terms of the revenue share, Universal will receive more than $1 from every Zune player sold. Not exactly gigantic, but as Jeff Spicoli would say to Mr. Hand, "righteous bucks." Of course there is another story behind the story with this whole thing. Rumor has it that Microsoft was having some trouble negotiating with the music companies and clearly they had the leverage given the fact the Zune player comes to market next week, so timing was clearly of the essence for the folks from Redmond. The newspaper reporters who wrote about the Universal/Microsoft announcement all ponder if the precedent will lead to Apple making similar announcements. I say no way, since Apple has the all the power. You control the market for portable media players (upwards of 90% for teens and college students), you lead the negotiations. At the end of the day, Microsoft is bringing an alternative product into a one product category. Is that what they did when they introduced the Xbox?
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