iTunes Stays
October 11th, 2008- iTunes
Apple threatened to shut down iTunes in light of the Copyright Royalty Board in Washington DC considering a motion to increase the royalty rate paid by Apple to music publishers and record labels from 9 cents to 15 cents. However, the board rejected the raise in payouts but did not back up Apple’s suggestion of lowering rates. As of now, publishers will continue to receive their 9 out of 99 cents that iTunes charges for songs. iTunes VP Eddy Cue said that “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.” In short, Apple wants to pay artists less so they can make more.
