Apple Threatens to Close iTunes Store Over Possible Royalty Spikes
Posted on September 30th, 2008 in iPod Touch |
Fortune states that the Copyright Royalty Board in Washington D.C. supposed to rule on Thursday about a request by the National Music Publishers’ Association to increase royalty rates. An increased royalty rate is wanted for all online music vendors, which includes iTunes.

This increase will raise on average increase prices from 9 cents to 15 cents a track. Apple is greatly opposed to this deal stating if this would happen they might close the iTunes Store all together.
“If the [iTunes music store] was forced to absorb any increase in the … royalty rate, the result would be to significantly increase the likelihood of the store operating at a financial loss - which is no alternative at all,” Cue wrote. “Apple has repeatedly made it clear that it is in this business to make money, and most likely would not continue to operate [the iTunes music store] if it were no longer possible to do so profitably.”
[Via Macrumors]
Written by: Dylan Bailey



19 Responses
I doubt they will. They would never close it, not while its the main selling point of the iPod/iPhone. The may well put the prices up, though.
UPDATE: Panic over. The iTunes Store will NOT be closing. See this article: http://www.ilounge.com/index.php/news/comments/copyright-royalty-board-leaves-download-royalties-unchanged/
I’m putting together my own site rating of good blogs like yours would you allow me to add yours? Thanks.
Nice article. Thanks.
Eugene
How come you don’t seem to be updating this site anymore?
How about a damn update already?
Bailey is dead. Long live the non Bailey
Everybody: join in with me:
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I won’t stop until you update this site, or at least tell us why you’re being so slow at the moment!
update!!!
come on people…
of course it is closed and Bailey forgot to notify. Why should this site be any different dead than alive
It’s ok to have a comment.
They would never close iTunes, they make so much money off of it! Plus every other site to get music off of is basically illegal, and causes a virus of some sort. They wouldn’t do that to their customers.
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They wouldn’t do that to their customers
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