Friday, October 3, 2008

Apple Will Not Shut Down iTunes

* Steve Jobs is awesome. He recognizes that Apple runs the digital downloading sector of the music industry and has no problem shutting it down. He doesn't let anyone fuck around with him.*

he Copyright Royalty Board in Washington, D.C. was considering a motion to increase the royalty rate paid by Apple to music publishers and the record labels from 9 cents to 15 cents. That caused Apple to threaten to shut iTunes down should they be forced to pay this increased rate. However, on Thursday the Copyright Royalty Board prevented the raise in royalty payouts.

It didn't, however, back up Apple's suggestion of lowering rates.

So, as of now, publishers will continue to get their 9 out of the 99 cents iTunes charges for songs.
Eddy Cue, iTunes vice president said that if the royalties were raised to 15 cents, then it would cause song sales to go down and Apple to probably operate at a loss.
Cue said, "Apple has repeatedly made clear it is in the business to make money and most likely would not continue to operate iTunes store if it were no longer possible to do so profitably."
So basically Apple wants to pay artists less for them to make more.

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