Royalty Rate Unchanged, Apple's iTunes Safe For Now
Apple generated some headlines on Tuesday when statements by iTunes vice president Eddie Cue suggested that Apple might shut down iTunes rather than pay increased royalty rates to music publishers.
Few took the threat seriously, but CNet reports that the Copyright Royalty Board decided to keep royalty rates at 9.1 cents. Music publishers had been pushing for an increase to 15 cents per track, while Apple was insisting that the price increase would not be tolerated by the market.
The 9.1 cents/track rate is now set for the next five years. An Apple spokesperson stated they were very pleased with the decision.
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