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Apple Threatens iTunes Shutdown if Royalty Increase is Pushed Through

October 1st, 2008, 21:36 Posted By: wraggster

Apple has threatened to shut down the iTunes music store if an obscure three-person board appointed by the Librarian of Congress increase the royalties paid to publishers and songwriters by six cents per song. The Copyright Royalty Board is scheduled to hand down its decision on these rates Thursday. As part of their general muscle-flexing of late, music publishers asked the board to increase royalties paid to publishers and songwriters from 9 cents to 15 cents per track. Apple -- which has mightily resisted tampering in any way with its 99 cent price point for tracks -- said that if the rate hike goes through and the labels refuse to absorb the entire resulting increase, the iTunes music store will become unprofitable."

http://blog.wired.com/music/2008/10/...ays-copyr.html

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