Money.co.uk is reporting that America’s Copyright Royalty Board will meet to discuss the raising of royalties for digital music purchases from 9 cents to 15 cents per song. THis leaves the “middlemen” of the digital music peddling business stuck with the bill. Eddy Cue, the VP of the itunes store said,
“If (the iTunes store) were forced simply to absorb any increase in its mechanical royalty rate, the result would be to significantly increase the likelihood of the store operating at a financial loss. Apple has repeatedly made clear that it is in this business to make money and most likely would not continue to operate (the iTunes store) if it were no longer possible to do so profitably”
With other apple products like the iphone depending on itunes activation and syncing, I wonder how this will affect the procedures if the store shuts down?
Read the full article here.
UPDATE: Looks like the appeal failed. Marketwatch is reporting that the rates will remain the same. The itunes store is safe.
