Universal to seek money for each iPod sold

And so it begins. Universal Music Group exec Doug Morris told the Reuters Media Summit that his company is interested in receiving a cut of the profits from each iPod sold.

“It would be a nice idea. We have a negotiation coming up not too far. I don’t see why we wouldn’t do that… but maybe not in the same way,” Morris said. His “same way” comment is a reference to the Zune, which Universal already gets $1 from after signing a deal with Microsoft.

Universal believes that much of the music on portable players is illegal, and the company argues that it deserves a share of the profits from such devices in order to make up for the money lost in album sales. Microsoft’s decision to cut a deal seems to have been driven by its need to launch with a large music store for the Zune?¢‚Ǩ‚Äùand Universal is one of the biggest players in the game. The Microsoft deal will clearly set a precedent for other music labels, who will no doubt try to squeeze cash from both Microsoft and Apple in the coming years.

Full story: Ars Technica