11.11.2006

I thought competition was supposed to help the consumer

Well, apparently Microsoft has signed a deal with Universal Studios to pay them a royalty on sales of its new Zune music player. This is in supposed compensation for the pirated content that is often loaded on mp3 players. This is NOT good for consumers - it gives all the studios licence to charge all the music players and services more money - ultimately costing consumers more money ... strangely, the Apple monopoly on internet music services and music players has been holding prices down for the consumer, because if content providers want market access, they have to go through Apple and play by their rules ... Microsoft's Zune ploy is an interesting development, and it'll be interesting to see where this goes ...