iTunes store shutdown feared
Posted by Beany on 1 October 2008 - 8:30pm.
So says the BBC, according to a report on an attempt to increase royalty rates.
http://news.bbc.co.uk/1/hi/technology/7645537.stm
A veiled threat by Apple to close its iTunes store has emerged 18 months after it was issued and just a day before royalty rates are to be set.
The Copyright Royalty Board meets on Thursday to rule on a requested 66% increase for sales of digital music from 9 cents to 15 cents a track.
A rise would have to be paid by either Apple, the record company or consumer. Apple opposed the rate hike and has said it is unwilling to raise its 99 cents a song price or absorb a rise.
Piper Jaffray estimates that Apple will sell 2.4 bn songs this year, giving it an 85% share of the digital music market.
Bookmark/Search this post with:
- More from Beany.
- Login or register to post comments
And who's going to blink first?
My money's on the music business.
How does 9 cents compare
with the traditional royalty rate?
Also itunes haven't passed back any economies of scale to their customers so if they don't absorb any increase it will be pretty close to abusing a monopoly position if you look at downloads in isolation.