[Mrluvaluva]

Apple could shut down its iTunes music store this week, if a verdict from the US Copyright Royalty Board forces the company to pay higher royalty rates.

A ruling is expected by the board today (October 2) on an application by the National Music Publishers' Association to raise the royalty fees paid to its members on songs purchased from online music stores including iTunes.

The association wants to increase rates by 66 per cent, from nine cents to 15 cents per track, whereas Apple wants a decrease to 4.8 cents per track, reports CNN.

In a statement submitted to the board last year, iTunes vice president Eddy Cue said that Apple would not stand for an increase:

"If the [iTunes 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," the statement read.

Cue added that Apple would have no qualms about shutting iTunes down if it was not making enough money.

"Apple has repeatedly made it clear that it is in this business to make money," he said, "and most likely would not continue to operate [the iTunes store] if it were no longer possible to do so profitably."

Research analysts Piper Jaffray predict that Apple will have an 85 per cent share of the digital music market this year.


Original article here

[SiaSiaSia]

it better not.. :|..

oh you mean the store.
ahhh

i love itunes <3. i don't know how people cope with windoze media player tbh

[Matt]

Bullplop. iTunes is doing so well for Apple - if I remember correctly, it's the number one music retailer in America now. I'm sure they'll cope.

[Matt08]

If iTunes does shut down then it'll only be in America. All of the other iTunes Store's will survive - including the UK one.

[Callum]

Biggest BS I've heard in ages, iTunes earns Apple so much money, no way would they shut it down.

[Spike]

It better not shut down

[Mrluvaluva]

Apple has won its dispute with the National Music Publishers Association over an application to raise royalty fees for songs purchased from online music stores such as iTunes.

As NME.COM previously reported, the association asked the US Copyright Royalty Board (CRB) to increase iTunes royalty rates paid by artists by 66 per cent, from 9 cents to 15 cents per track.

At a ruling in Washington yesterday (October 2) the CRB declined the request.

An application made by Apple to decrease the rate to 4.8 cents per song was also refused, although the board did agree to freeze the rate at 9.1 cents for the next five years, reports BBC News.

Apple spokesman Tom Neumayr said the company was happy with the outcome.

"We're pleased with the CRB's decision to keep royalty rates stable," he said.


Original article here