Apple threatens iTunes closure

Over increased royalty payments

Apple Threatens iTunes Closure 0

1 October 2008 14:10 GMT / By Amy-Mae Elliott

Apple has threatened to close iTunes rather than pay out more in royalty costs, it has been revealed.

The US Copyright Board will rule this week on a decision to increase in the royalty on digital sales from 9 to 15 cents per track, as per the Music Publishers' Association's claim.

But, the head of Apple's Internet Services division, Eddy Cue, said Apple will not cover the extra 6 cents.

"The result would be to significantly increase the likelihood of the store operating at a financial loss - which is no alternative at all", he wrote to the Royalty board.

"Apple has repeatedly made clear that it is in this business to make money, and most likely would not continue to operate iTunes if it were no longer possible to do so profitably."



Comments

  • I won 100 iTunes this week, better use them quick if they are going to close iTunes, I can understand them not wanting to pay an extra 6% though and if they did they would have to pass the cost on to us. Posted by Christine Bull, United Kingdom

(Will not be published)

  (Next time sign in to bypass ReCaptcha)

Latest in Audio

Latest on Pocket-lint.com

Pocket-lint.com poll

Q. Would you pay to use Twitter?

Vote YES Vote NO

» LAST TIME
When asked Should under-10s have mobile phones? 23% said yes and 77% said no

Top 10 Broadband

Compare 50+
broadband packages

Home Broadband »

Top products

tip us on news

Rss feed

Follow us on Twitter