The Final Reason I Won’t Buy A Zune: The Sin Tax
We’ve been pretty hard on Zune here, noting several issues before it has even launched.. Nevertheless, I had still toyed with buying one, just to review it. It only seemed fair to maybe give it a try. I mean, after surviving the Prism DuroSport 6000, how bad could it be? But forget all of that, because I read something last night that ensures that I will never ever buy one. Microsoft is giving a percentage of the money from sales of Zune to Universal Music.
Ah yes, the latest representation of an an incredibly anti-consumer trend: the Sin Tax on a consumer device.
Don’t believe me? Check out this quote from Universal Music Group Chairman and CEO Doug Morris:
“The only factor was that we feel that there’s a great deal of music that’s (stored) on these devices that was never legitimately obtained, and we wanted to get some sort of compensation for what we thought we’re losing,” Morris said. “I want our artists to be paid for the music that makes these devices popular.”
These days, when a record company cries about “The Artists!” it just reminds me of those right-wing censorship groups like Focus on the Family who always scream “The Children! What About The Children!?!” It’s the dishonest use of an above reproach third-party in order to advance their own cause.
Let’s ignore the decades of artificially high LP and CD prices, and let’s forget the fact that the percentage that the artists are supposedly going to get paid will be miniscule at best, and look at the unbelieveably arrogant logic behind this statement. Basically, what Mr. Morris is saying is this:
- Every single person who buys a portable media player is a thief and a pirate.
- All music comes from Universal.
- Therefore, you should pay extra for any device you use to store music, you fracking thief.
It’s a Sin Tax, pure and simple. Since Microsoft has no doubt baked this fee into the list price of the Zune, you the consumer are paying more for the Zune because you might — MIGHT! — use it for a purpose that Universal feels is piracy. Which might even include ripping and storing music that you’d previously purchased from them. Over and over again. Like that Complete U2 that I downloaded from iTunes and immediately burned to disc and ripped into mp3z.
What’s next? TiVo paying NBC because I might fast-forward through the commercials on The Office? Sirus paying the record companies because some little kid might record something from one of their portable players? Oh wait, that one already happened. Because some people think that kids recording songs off of the radio is piracy, and needs to be guarded against at all costs.
As a consumer, I’m going to think twice about purchasing any product where I’m paying extra for it just because some content provider thinks I might use it in a way that will deprive them of a revenue stream.
In the case of Zune, the only way that it is fair for the consumer is if all Zune users get free Universal Music forever from the Microsoft music store.
Otherwise, it’s essentially extortion. Apparently Microsoft caved to the extortion because otherwise they would have been missing Universal content when Zune launched, but it’s a bad precedent. Boo to Microsoft for bowing down to the extortion instead of fighting it. Shame on Universal Music for hating on us consumers — who have been buying your overpriced products for our entire lives — so much once again.
I may never have bought a Zune anyway, but this is the tipping point, now I know for absolutely sure why I will never buy one. Period.
Technorati Tags: Microsoft, Zune, Universal Music, Sirius, MSFT
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41 Comment(s) so far
1. Kirk wrote on November 9th, 2006 at 8:56 am
The New York Times article indicates that Microsoft will be offering the same deal to the other labels. They also say that this was a last minute deal after weeks of tense discussions. But they don’t really say why the discussions were tense or what would happen if Microsoft hadn’t agreed to give money to Universal. There are plenty of other media players on the market and none of the other technology companies are paying media companies a fee with each sale.
My guess is that Universal probably would have refused to allow their music to be sold in the Zune marketplace. If that’s the case, it would have been a pretty major blow for the Zune launch. Geez, it’s five days before the Zune launch and they didn’t have their media partners locked up in advance?!
This deal sets a bad precedent. If for no other reason because the company with the deepest pockets has stepped in to set the going rate for these sorts of agreements. Media companies will almost certainly use this as leverage when dealing with Apple, Creative, Sandisk, and all of the other manufacturers of media players.
In Europe there’s talk of enacting an annual fee on media players similar to the television tax. Peter Jenner gets into this in the interview I linked to last week. If this happens it would likely be part of a plan to enact a blanket license that would allow consumers to access all music in exchange for paying an annual fee. That approach would likely generate more in the way of royalties for the artists, provide consumers with more and better media options, and eliminate DRM. It would also potentially weaken the major labels.
The Microsoft-Universal approach does nothing for consumers and almost nothing for the artists. It’s basically a bribe to keep the recording industry from torpedoing the Zune launch.
2. Stephen Chamberlain wrote on November 9th, 2006 at 10:50 am
One of the key selling points of the Zune is the wireless sharing feature akin to p2p file sharing. Microsoft is imposing a form of compulsory license on users for the right to share content. This seems to be a rather good idea to me so long as it gives Zune users some protection against infringement actions by the RIA et. al. In fact, the EFF and others have proposed a taxation system that would mimic this type of arrangement.
Your reaction shouldn’t be that this is defacto horrible but rather to look at what the consumer is getting in return for this bargain. It may well be that the deal sucks for the consumer. I don’t know. But the fact that such an arrangement exists is neither new nor necessarily bad for end-users.
3. YourCritic wrote on November 9th, 2006 at 10:53 am
Hey fanboy,
Try not to get left at the bus station while the rest of us hope onto something with obviously more potential.
4. Matt wrote on November 9th, 2006 at 10:56 am
Something tells me that you were just looking for an excuse.
5. TrashMyZune » Blog Archive » This guy is really not going to buy a Zune. wrote on November 9th, 2006 at 11:03 am
[…] On a site called Medialoper, Jim Connolly gives the final reason why he’ll never buy a Zune, The Sin Tax. He found an article on USA today about how Microsoft is going to be paying Universal Music Group (and probably other music publishers as well) a fee for each Zune sold. […]
6. Kirk wrote on November 9th, 2006 at 11:04 am
Stephen:
You do know about the wireless sharing limitations, right? Also, this sort of imposed compulsory license is entirely ad hoc. It’s between Microsoft and Universal. What about the rest of the labels, not to mention independent artists?
It seems to me that a license that’s intended to compensate artists and corporations for losses due to sharing and piracy has to somewhat more standardized.
7. Chad wrote on November 9th, 2006 at 11:12 am
Honestly, as far as my issues with the Zune go, the viral DRM changing thing is what bothers me the most.
8. Guess Who? wrote on November 9th, 2006 at 12:36 pm
If you fast forward through the office, you are a moron.
9. Jim wrote on November 9th, 2006 at 12:51 pm
D’oh! I meant to write “fast-forward through the commercials on The Office.” My mistake.
So please pick another reason why I’m a moron.
10. alessandro wrote on November 9th, 2006 at 2:14 pm
In Italy we have sin taxes for every media: USB keys, CDR, CDRW, DVD-R, DVD+R
Funny enough, you can legally buy those articles abroad and have them shipped in Italy without paying the tax.
11. pen wrote on November 9th, 2006 at 2:40 pm
you DO know this happens with black CDs right?
And possibly with blank DVD’s.
12. pen wrote on November 9th, 2006 at 2:41 pm
you DO know this happens with blank CDs right?
And possibly with blank DVD’s.
13. Vince wrote on November 9th, 2006 at 2:45 pm
I think now I will be able to buy a zune, rape the shit out of bitTorrent, and feel morally justified in doing so.
14. Jim wrote on November 9th, 2006 at 2:53 pm
I grabbed the following straight from Wikipedia
15. indy wrote on November 9th, 2006 at 3:05 pm
You already pay taxes in many of the products you use. Companies settle out of court, they wheel and deal behind the scenes, and you pay as a result. It’s silly to pick on MS for this. You pay higher for wheat simply because the U.S. has set the price for imports of wheat at a certain level so other countries cannot compete. Will you stop buying wheat?
16. Steve wrote on November 9th, 2006 at 3:38 pm
It always amazes me that one can convict without even an example of proof. Thanks to the human mentality - “if it’s in print it must be true!” You lost credibility the minute you started ranting.
17. Jim wrote on November 9th, 2006 at 3:47 pm
Indy,
Um, not really sure what wheat has to do with it. I see a huge difference between how the government tries to regulate markets and Microsoft caving in to a greedy major label. But any time I can reference the end of Love and Death, can’t really pass that up.
Steve,
Please explain to me how Microsoft is not doing this. Perhaps you have inside information contradicting the reports in USA Today and the New York Times. Is your last name Ballmer, by any chance?
18. james wrote on November 9th, 2006 at 4:14 pm
Is it possible that this arrangement would offer the end user some legal protection from suits by RIAA or others since you have paid some royalty based on the arrangement between Microsoft and Universal or whomever?
19. Jim wrote on November 9th, 2006 at 4:18 pm
James,
Interesting question. However, my guess is no. I’m pretty sure that the tens of thousands of dollars that I’ve spent on recorded music in my life would be to no avail if the RIAA decided to come after me.
20. Foster Foskin wrote on November 9th, 2006 at 4:44 pm
What the fuck is Zune, and why would I buy it anyway? I have all the music I want on my hard disk and CDs. Thanks LimeWire. Heh Heh
21. Kirk wrote on November 9th, 2006 at 5:25 pm
James - no, this won’t offer any additional protection to the consumer. This is not any sort of blanket license. It won’t entitle you to download free music from bittorrent or any other p2p service. It’s basically a payoff to get Universal into the Zune marketplace, where they’ll make even more money when you buy their music.
This simply can’t be compared to the blank CD tax. If the labels have their way we’ll get a real tax on top of this fee.
22. baka wrote on November 9th, 2006 at 11:26 pm
fuck you foster foskin!
hopefully riaa will come after you!
23. jbelkin wrote on November 9th, 2006 at 11:30 pm
Of course, MS has a hidden agenda in hoping to make Apple’ negotiations with the record labels more difficult down the line but then some low level Ms lawyer is no match for Steve Jobs, head of Apple AND Pixar AND on the board of Disney.
Two, what’s next? Fridge makers should charge us everytime we load more food in the appliance - after all, all our food would spoil - I can see the marketing - it doesn’t cost money, it saves you money!
MS is great at selling to enterprise - confused about selling to consumers … they think we’re morons - just look at their pricing scheme for buying music. Songs are “79 credits,” but in reality when you deposit $5 in the MS Zune bank, you get 395 credits so each song really costs $.99 but it looks like $.79 to you AND you have to deposit $5 to start unlike Apple, a song costs you $.99 charged to your credit card or paypal only when you say YES. MS holds onto your $5 and that’s the minimum each time …
Perhaps someone should point this out to the attorney general of your state.
24. Kirk wrote on November 10th, 2006 at 12:50 am
jbelkin: good point. We’ll be taking a closer look at Microsoft Points next week. Stay tuned.
25. jim wrote on November 10th, 2006 at 5:13 am
It bullshit and should not be allowed to stand, i was suprised when i heard the news too. Lucky everyone knows its a flop before its even released like the ps3.
26. Alonline » A very good reason not to buy a Zune wrote on November 10th, 2006 at 8:11 am
[…] Apart from the fact that Zune is the stuoidest name anyone has ever decided to use, there is a genuine reason why you should not buy the Zune. A percentage of the purchase price of every Zune will be passed on to Universal Music. This percentage has not been disclosed, and there is no real reason why you should be paying Universal Music when there is no guarantee that you will ever have any Universal Music music on your Zune - still you have to pay them anyway. […]
27. Roger wrote on November 10th, 2006 at 8:22 am
You wrote:
These days, when a record company cries about “The Artists!†it just reminds me of those right-wing censorship groups like Focus on the Family who always scream “The Children! What About The Children!?!†It’s the dishonest use of an above reproach third-party in order to advance their own cause.
Gee, I find most of the carping about “the children” from idiotarians like the “Children’s Defense Fund” who use the children for creeping socialism, or from the teacher unions, to pad their salaries and protect incompetents.
28. Jim wrote on November 10th, 2006 at 8:38 am
Fine. Same point. Anybody who uses “The Children! What About The Children!” as a battle cry is suspect.
29. its about time» Blog Archive » links for 2006-11-10 wrote on November 10th, 2006 at 4:13 pm
[…] The Final Reason I Won’t Buy A Zune: The Sin Tax | Medialoper Microsoft will be giving a percentage of all Zune sales to Universal because people download music. WTF??????? (tags: microsoft mp3 music software zune) […]
30. Grandes Poches » links for 2006-11-11 wrote on November 11th, 2006 at 12:23 am
[…] The Final Reason I Won’t Buy A Zune: The Sin Tax | Medialoper La Taxe Universal (tags: libertés) […]
31. Chris wrote on November 11th, 2006 at 3:52 am
who needs *another* separate gadget?
32. Davis Freeberg’s Digital Connection - GigaOm Launches Blogcott Against Universal wrote on November 13th, 2006 at 2:56 pm
[…] There has been a pretty negative reaction to Microsoft’s announcement that they will start paying a $1 sin tax to Universal Music Group on all Zune sales, but super blogger Om Malik has taken the rhetoric one step further and has declared a one week blogcott on all UMG purchases. His boycott stems from seeing yet another comment by Universal where they accuse their customers of being theives. […]
33. Katnoodle: by Richard Cassidy » Blog Archive » Zune/nose/spite/face wrote on November 14th, 2006 at 4:08 am
[…] So we have… Wireless DRM imposing, self destroying, battery sucking, sharing. Microsoft Points/free loan to billionaires con. [ref one, ref two] Paying Universal tax ‘cos they tell me I’m a pirate. (yeah, damn right I’m insulted) Incompatible with everything, even PlaysForSure (which it most certainly doesn’t). Plastic brown is not an attractive colour – wherever you come from. […]
34. Proc.new » Blog Archive » The Zune’s impact on the music industry wrote on November 26th, 2006 at 12:10 pm
[…] The Final Reason I Won’t Buy a Zune […]
35. chchchchia wrote on December 6th, 2006 at 2:44 pm
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36. ZuneGuy wrote on December 12th, 2006 at 11:15 am
Microsoft is no dummy.
I mean “they” know that just as many people that own legally purchased content may have some songs that were illegally purchased BUT that is not something to accuse all individuals of being thieves as Universal has so negligently stated.
It’s also known that file sharing is a great way to gain ground on iPod, by popularity and thus SEIZE a great portion of their market share by potentially and intentionally leaving some holes in the software… maybe hacker friendly?
Stick around as more content is added to the Zune. More features, functionality, and firmware updates.
Besides, IF Universal wants to treat us like criminals… and Microsoft’s paying “in the event” of criminal actions, then they’ve received recompense in advance of the potentially illegal activity that may or may not commense (depending on the user) and they can not cry foul for what goes on noticed or unnoticed concerning infringement.
The userse are safe. For now, enjoy it for what it is; an .mp3 player. Even import songs you purchased from iTunes. Note, as long as it’s in your computer library, then it’s yours to listen to where ever you want. So if you can “somehow” manage to copy a shared song to your computer…
I “guess” you might just be able to keep it.
Microsoft is paying their fee to keep the finger out of their faces and soon enough they will say, “Hey you Universal Unics… we’ve paid in advance so OUR name is clear… remember, see the paperwork? If you want to do anything else… good luck searching millions of users and further shaming your name.”
Guns to kill people… it’s the person with the gun. Microsoft products don’t infringe on artist rights… ___________ fill in the blank.
I think we know pirating as well as anyone else does. Anybody ever download a copy of Windows? Office? You unintentionally helped make Microsoft a worldwide standard. The benefit from that is just as amazing as it is damaging but what’s a better way to become a standard than to have both purchasers and pirates all on one platform?
Universal screwed themselves. We should all take our frustration out on them in the coming updates or generations of both iPods and Zunes.
37. ZuneGuy wrote on December 12th, 2006 at 11:21 am
lol… that’s meant to be “guns don’t kill people”
38. Jim wrote on December 13th, 2006 at 11:44 am
ZuneGuy wrote:
As long as the file sharing is limited to “3 Days or 3 Plays,” then, no it won’t. It isn’t even sharing: “squirt” is actually incredibly descriptive, since nobody expects to keep anything that is squirted at them.
Also: ew.
At best, it will seem a novelty that everybody tries once or twice, like video recorders on cell phones.
I would also be more convinced that MS has the attitude that “piracy helps create platforms” if I hadn’t read all of the things about how Windows Vista might just stop working correctly if it starts distrusting you.
39. Everything Microsoft did wrong with the Zune | The Montoya Herald wrote on January 2nd, 2007 at 10:17 am
[…] Third, Microsoft is trying way too hard to make record companies happy. When I heard that Microsoft is paying $1 to Universal for every Zune purchase, I was disappointed. Medialoper has a pretty good entry on it. The idea is that since the Zune might be used for pirating music, Universal wants $1 from the sale of each Zune to compensate in advance. It’s called a “sin tax” and apparently more deals will probably be made with other record companies. Now I know this exists with many other products such as blank CD’s and DVD’s, but this is the first time such a tax has been paid for an audio player, and Microsoft is setting a precedent for record companies to expect the same from other audio device manufacturers. It’s also just wrong; not every Zune user is pirating music, and there’s nothing about the sin tax that protects users who pirate music from being sued. In the end, it doesn’t benefit consumers at all, and for the consumer that’s spending $250 for a unit, it doesn’t make sense. […]
40. Zune : More bad press, please wrote on May 2nd, 2007 at 12:06 am
[…] course, MS is the same outfit giving kickbacks to the recording industry for every Zune they sell. At this point, Microsoft is truly making the world just a little bit worse every […]
41. NBC’s Plan to Make The Zune Even Worse | Medialoper wrote on May 8th, 2008 at 10:02 am
[…] Microsoft’s history of giving the entertainment industry exactly what it wants — the $1 per Zune surcharge and Zune’s 3×3 WiFi sharing limitations — it’s not hard to imagine that a […]