by Tamera H. BennettPosted October 23, 2008
In a press release issued today, Dell announces a partnerhsip with Universal Music Group to provide pre-loaded mp3 content for Dell PCs.
As part of this unique offering, Dell and UMG have created 50 and 100-song music bundles starting at $25, each of which includes a curated selection of MP3s for approximately half of current standard per track pricing. As a result, they offer consumers twice the music for their money.
Since Universal's holdings include numerous record labels and music publishers, they are only providing content in which Universal controls 100% of the master rights and 100% of the publishing rights. I do wonder how the artists and songwriters are getting paid on this deal. We do not have any way of knowing exactly what type of deal was struck between Universal and Dell and even if you could allocate the price proportionately to the masters and songs and take into account the value attributable to the brand of Universal. Hopefully the songwriters and artists are being paid a full royalty just as if each individual track was purchased for download via an outlet such as iTunes.