Apple Threatens To Shut Down Itunes!!
Source: http://technology.timesonline.co.uk/...cle4859885.ece
Quote:
Apple could shut down iTunes, the world's biggest online music store, if a ruling expected tomorrow forces the company to pay more to music makers for each downloaded track.
The Copyright Royalty Board (CRB) in Washington DC will decide whether to grant the request of American music publishers to increase royalty rates on songs bought from online music stores such as iTunes.
The National Music Publishers’ Association, which represents the interests of music makers and songwriters in the US, want rates to be increased 9 cents to 15 cents, which represents a 66 per cent rise.
Apple have vehemently opposed the move. In a statement to the ruling body last year, the company threatened to shut down iTunes rather than raise the price of songs in order to afford the higher royalty rates.
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Royalty Rate Unchanged, Apple's iTunes Safe For Now
Quote:
Apple generated some headlines on Tuesday when statements by iTunes vice president Eddie Cue suggested that Apple might shut down iTunes rather than pay increased royalty rates to music publishers.
Few took the threat seriously, but CNet reports that the Copyright Royalty Board decided to keep royalty rates at 9.1 cents. Music publishers had been pushing for an increase to 15 cents per track, while Apple was insisting that the price increase would not be tolerated by the market.
The 9.1 cents/track rate is now set for the next five years. An Apple spokesperson stated they were very pleased with the decision.
Update.