Apple's iTunes Threat Pays Off

Thursday, November 27, 2008 Leave a Comment

We brought you news recently of Apple's thinly veiled threats that if the applied-for increase in royalty costs on digital downloads came to fruition, the company would have to consider closing iTunes due to the loss of revenue.

It seems however, that the gamble has paid off, as the Copyright Royalty Board, empowered to set the rate that digital music stores must pay music publishers, turned down the National Music Publishers' Association in its bid to get the price raised from nine cents per track to 15 cents.

Apple announced that it was 'pleased' with the outcome, while the rest of us look on and wonder just how much influence the company's threats had on the decision, bearing in mind it is the most popular and conspicuous music download site in existence.

apple.com/itunes

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