Microsoft Zune Pays Bonus to Indie Labels

[Mumbo Sauce]

In a bid to make peace with the indie community, Microsoft's Zune division issued significant checks to The Orchard, IODA and possibly other indie label and artist representatives. The money will be split between their member labels and artists, in both cases.

When Microsoft announced that it was going to pay Universal Music Group and other major labels $1 for each Zune sold, presumably to make up for the device encouraging people to pirate music (we're still not sure how that logic works), some onlookers responded that the company was unfairly leaving indies out of the equation, like a rich uncle with a favorite nephew. These bonus checks should alleviate some of that concern, as Hypebot, which posted a copy of The Orchard's letter to its members, points out.

The move could increase pressure on MySpace Music, which was built by the indie sector, to start treating indies with the same degree of respect (read: money) that it gives to the majors.

http://blog.wired.com/music/2008/05/microsoft-zune.html