Microsoft, Universal Music will share Zune sales – Los Angeles Business from bizjournals::

Microsoft Corp. has agreed to pay Universal Music Group a portion of the sales of the software giant’s new Zune portable music player, the company announced Thursday. Redmond, Wash.-based Microsoft also will pay royalties for UMG songs. Both companies characterized the deal as a “groundbreaking” agreement that will create a new revenue stream for UMG and its artists, according to a joint press release. Microsoft (NASDAQ: MSFT) said it will offer similar arrangements to other music labels. The deal was announced as Microsoft prepared for a Nov. 14 rollout for its Zune music device, which is widely seen as a direct competitor to Apple’s popular iPod. Universal Music Group, a unit of Paris-based Vivendi, is one of the world’s largest music companies, with either operations or licensees in 75 nations. It operates Los Angeles’ Universal Music Publishing Group, a publishing house with more than 1 million copyrights, and Santa Monica-based Universal Music Enterprises, the company’s catalog management division. Zune units are expected to retail for about $250 each.