Thursday, October 02, 2008

Apple threaten to shut iTunes due to royalty rate increase

From the BBC:

"A veiled threat by Apple to close its iTunes store has emerged 18 months after it was issued and just a day before royalty rates are to be set.

The Copyright Royalty Board meets on Thursday to rule on a requested 66% increase for sales of digital music from 9 cents to 15 cents a track.

A rise would have to be paid by either Apple, the record company or consumer.

Apple opposed the rate hike and has said it is unwilling to raise its 99 cents a song price or absorb a rise."

Update: There's an error in the story (thanks to Paul Saunders via the ORG list for pointing it out). It is not the percentage royalty paid to artists which will change but the percentage paid to composers and songwriters.

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