US music royalty rates remains the same

iTunes saved to fight another day

3 October 2008 11:23 GMT / By Amy-Mae Elliott

The US Copyright Royalty Board has frozen the rate that digital-music stores must pay music publishers.

Apple executive Eddie Cue had threatened closure of iTunes if the rate had been increased, insisting the online store would run the risk of non-profitability if the costs has risen.

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

The rate will remain at 9.1 cents per song, despite calls from the industry to increase it to 15 cents. This is now set for 5 years.

"We're pleased with the CRB's decision to keep royalty rates stable", said an Apple spokesman.