iTunes Lives to Sell Another 5 Billion Songs
If the [iTunes music store] was forced to absorb any increase in the … royalty rate, the result would be to significantly increase the likelihood of the store operating at a financial loss–which is no alternative at all. Apple has repeatedly made it clear that it is in this business to make money, and most likely would not continue to operate [the iTunes music store] if it were no longer possible to do so profitably.”
– iTunes vice president Eddy Cue
Not that it would ever have happened anyway, but Apple (AAPL) will not be shutting down the iTunes Store in protest over increased royalty rates paid to songwriters and publishers for CDs and digital music downloads. The Copyright Royalty Board Thursday left the rate for royalties unchanged at nine cents a track, paying no mind to a proposal by the National Music Publishers’ Association that would have raised it to 15 cents–a 66 percent hike.
Seems Apple’s posturing paid off. Said Apple spokesman Tom Neumayr, “We’re pleased with the CRB’s decision to keep royalty rates stable.”