Apple Talks Tough, Threatens To Close iTunes If Royalty Rate Rises
The National Music Publisher’s Association has asked for a 66 percent increase on the royalty rate paid out on the sales of digital music — from nine cents per track to 15 cents.
Apple already pays 70 cents of each song purchase to the record companies, who aren’t willing to pay for the increase themselves. Since they would essentially be operating the service at a loss, Apple would rather shut the store down than raise their prices beyond 99 cents per track.
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