Universal Music Group CEO Doug Morris resents that MTV and other cable music channels built multibillion-dollar businesses around videos given away by record companies anxious to promote their artists.
So when he saw his own grandson watching 50 Cent's In Da Club video on Yahoo, it got him asking: How much are we getting paid for that?
The answer -- nothing -- led Morris to pull all of Universal's videos from the giant Web portal until it agreed to a licensing deal in 2005.
He wrangled similar arrangements from Time Warner Inc.'s AOL and other Internet portals as part of his unrelenting campaign to generate more revenue for Universal.
Among Morris' most recent targets were Google Inc.
's YouTube, Microsoft Corp. and News Corp.'s MySpace.
As the largest music company, he's got an interesting hand of cards, said Mike McGuire, a technology analyst for Gartner Inc. He's playing them pretty adamantly and pretty hard.
Universal, a division of French telecommunications giant Vivendi SA, accounted for about 31 percent of total U.
S. album sales in 2006, according to Nielsen SoundScan. The company is home to artists such as U2, Kanye West and Mariah Carey.
Morris' get-paid mantra has cast him as a champion in the eyes of many people in the industry -- and a bully among others -- at a time when music companies are trying to stem losses from a six-year slide in compact disc sales and widespread online piracy.
With online music and video becoming the digital content of choice for iPods, mobile phones and Web sites of every stripe, the recording industry is scrambling to find ways to cash in as much as possible.
I'm no tough guy, said Morris, a former songwriter and performer who is entering his 12th year as chairman and CEO of Universal Music.
It's just the position you get put in, where you're either going to succumb to it, and say, 'Fine, that's OK, yeah, put your advertisements next to our videos, we don't care,' or you're going to say, 'Hey, this isn't fair.'
Other recording companies have yet to follow Universal's hard-line lead, particularly in suing online video and social networking sites.
In his tussle with YouTube, Morris called the site a hub for pirated music videos and negotiated a licensing deal that landed Universal and other labels small stakes in the company just before it was acquired by Google for $1.
76 billion last year.
Morris has already suggested, albeit guardedly, that his next target will be iPod-maker and No. 1 online music retailer Apple Inc.
With Apple's licensing deal to sell Universal music on iTunes set to expire in May, Morris said, There might be other ways to get paid.
Speculation in the industry is that he'll seek a slice of iPod sales. Apple declined to comment.
Universal's upcoming negotiations with Apple could set the tone for the rest of the recording industry. But Morris says he doesn't know if he's prepared to pull Universal's music from iTunes to get a cut of iPod sales.
Last fall, Morris threatened not to license Universal music to Microsoft just days before it was scheduled to launch its own online music store and its Zune digital music player.
In response, the software company coughed up a royalty of just over a dollar for every Zune sold and paid a licensing fee for the right to sell Universal music.
Microsoft extended the same terms to other labels, a move that led Edgar Bronfman Jr., chairman and chief executive of Warner Music Group, to tell Wall Street analysts that it took a strong stand by the industry leader to make the deal happen.
Morris isn't sure he is cut out for the role of enforcer but believes he has no choice.
The truth is that I'm the most unlikely candidate because I don't like being in the middle of the sandwich, he said. Morris broke into the music business as a performer and songwriter in the late 1950s.
His writing credits include the Chiffons' sugary 1966 chart-topper Sweet Talkin' Guy.
He launched his own label and then sold it in 1978 to Warner Music's Atlantic Records. Two years later, he became president of Atlantic.
In the mid-1990s, Morris vaulted to president and chief operating officer of Warner Music U.S. -- the parent company of Atlantic -- but was soon ousted in a clash with corporate management with its then-parent company, Time Warner.
He went on to form a joint venture with MCA Music Entertainment Group and was tapped in 1995 to be chief executive of the company, which was renamed Universal Music Group.
- Kanye West Pictures, Biography, Discography, Filmography, News, Reviews, Ringtones,
Hun LeeIn a short span of time, Kanye West went from hitmaking producer to just plain hitmaker, as his stellar production work earned him a solo record deal and soon his beats were accompanied by his own witty raps on a number of critically and commercially suc...
- brooklynvegan: August 13, 2006 - August 19, 2006 Archives
Will SmithDOWNLOAD: (V.U. cover) (MP3) That CD there pictured to the right is the EP put out in May. is six songs, three of which are covers of Siouxsie And The Banshees, the Velvet Underground and Frank Sinatra. One-third of the album is available for download...
- brooklynvegan: May 14, 2006 - May 20, 2006 Archives
RonaldinhoMay 20, 2006 Another "classic" set of SXSW photos.... "Liverpool's quirky, saxophone-toting rock quintet will release their second album, 'Tired of Hanging Around,' Aug. 22 in North America via Red/Columbia...
- brooklynvegan: music Archives
Sammy King"Word on the street: an acquaintance heard it from a friend, who heard it from a friend who knows the owner of Galapagos - he's selling out in the next year or so to cash the space in to.....
- MTV News | For The Record: Quick News On Jay-Z, Kanye, Evanescence, Mary J., 'Idol,' 50 Cent, Dipset More
Jim BorowskiJay cleats going to Football Hall of Fame; West to star in unscripted TV series; Amy Lee engaged. Forget the Rock Hall: Jay-Z is headed to the Football Hall of Fame...
