Microsoft Zune: Paying off the Industry One Label at a Time

When you enter a crowded business market you need to spend your way to dominance. Microsoft has the cash.

It appears Microsoft has struck a deal with Universal Music giving them a portion of the sales from every Zune they sell. This undermines the traditional strategy created by Apple where music labels received money from song downloads, and not player sales. Microsoft has also said that similar offers are on the table for other labels as well. Way to go

Microsoft Zune: Paying off the Industry One Label at a Time - Gizmodo

Microsoft Strikes Deal for Music.