iTunes to Shut Down?
All hail the credit crunch. With royalty fees set to receive a substantial 66% increase tomorrow (9 cents > 15 cents), iTunes slash Apple are now threatening to shut down the iTunes Store due to profits potentially turning into substantial losses…
In April 2007 the company’s vice president for iTunes, Eddy Cue, submitted testimony to the Board at the Library of Congress surrounding all these royalty hikes.
“If iTS (iTunes Store) were forced to absorb any increase in the mechanical royalty rates, 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 clear that it is in this business to make money, and would most likely not continue to operate iTS if it were no longer possible to do so profitably,” said Mr Cue.
Continued in a BBC article, The National Music Publishers’ Association has asked for the royalty rake increase and has said it believes everyone will benefit because the digital music market is growing.
“I think we established a case for an increase in the royalties,” said David Israelite, president of the NMPA.
The Recording Industry Association of America (or the RIAA) said sales of digital songs and albums rose 46% last year to $1.2bn.
Yikes.
(+74 rating, 15 votes)
Whatever. there is no reason that a band shouldn’t be selling their own music at this point. It’s been proven not only successfuly, but hugely profitable several times already. And I know i’m more likely to purchase something directly from a bands website if i can download it right then and there than if i have to go anywhere else to find it, even just another website or dl service.
Whatever. there is no reason that a band shouldn’t be selling their own music at this point. It’s been proven not only successful, but hugely profitable several times already. And I know i’m more likely to purchase something directly from a bands website if i can download it right then and there than if i have to go anywhere else to find it, even just another website or dl service.
my bad