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Royalty Increases Would Threaten iTunes Music Store?

Category: Internet
Posted: October 2, 2008 12:08PM
Author: jammin

A royalty increase for music tracks distributed online is being ruled on today would see rates increased from 9 cents to 15 cents a track. According to a recently released statement that was originally made in April 2007 by Apple vice president Eddy Cue, such a rate increase could potentially push the iTunes store into operating at a loss, leaving the company in a difficult position. If you believe that actually would be the case if rates were to increase, then it would probably be even harder to consider that Apple may shut down the iTunes music store because of it. Stranger things have happened (particularly if you look at recent economic events), but does this hold water or is it simply Apple aiming to get the public on side before any changes are made?



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