Apple came out victorious after a ruling in Washington yesterday (October 2nd) by the US Copyright Royalty Board that froze the royalty rate for songs purchased via iTunes for the next five years. The National Music Publishers Association wanted to increase the royalty fee from 9 cents to 15 cents per track. However, the CRB rejected the hike request, leaving publishers to only get 9 cents per 99 cent download of a song. It also refused Apple's request to lower the royalty rate to 4.8 cents per song so that it could spend more on research and technology against the competition and piracy.
Apple had threatened to shut down iTunes, which launched in 2001 and has sold more than 5 billion songs, if the CRB had decided to pass the increase of the royalty rate. Apple said that it was in the business to make money and an increase in the royalty fee would cause song sales to drop and the company to probably operate at a loss.
In the end, Apple was pleased with the outcome of the ruling, a spokesman for the compnay said.
My Trusted MOGs
Lame. I'm a devoted Apple customer, but this is ridiculous. I really doubt the rate ike would effect their bottom line that much. I'm liking Big Brother Jobs less and less these days.
My Trusted MOGs
yeah, its weird how Apple is playig victim here when they clearly have a control on the market. maybe with amazon's new online music store offering tracks for WAY less, they are shaking in thier shoes...
My Trusted MOGs
yeah total monopoly...cool article tho charley
My Trusted MOGs
It won't be long before Apples' front door will be growing cobwebs.. Mp4a.. crap!
My Trusted MOGs
say wha? MP4a?
My Trusted MOGs
You probably already have Indiana/Charley,and i'm probably talking shite as usual but just go HERE to make them into Mp3s...
(other converters are available)