Get Better Gear!

Premier Sponsors

TechRestore

Other World Computing

Top 5 Free Apps

Release Date: August 05, 2009
Genre: Games
Release Date: May 22, 2009
Genre: Games
Release Date: August 29, 2009
Genre: Games
Release Date: March 27, 2009
Release Date: August 07, 2009

iTunes New Music Releases

Release Date: September 29, 2009
Genre: Rock
Release Date: September 20, 2009
Release Date: September 15, 2009
Release Date: August 25, 2009
Genre: Rock
Release Date: August 25, 2009

Top 5 Paid Apps

Release Date: April 22, 2009
StickWars $0.99
Release Date: March 31, 2009
Genre: Games
Bloons $0.99
Release Date: April 05, 2009
Genre: Games

Discover New Music

  • The Life Pursuit

    • 8 out of 10
    • Belle & Sebastian
    • The Life Pursuit is a sort of Reeses Peanut Butter Cup. You get Belle & Sebastian's peanut butter (its wistful, often irresistible pop) dipped in a 'Have A Nice Day!' and glam 70s chocol

  • Trouble

    • 8 out of 10
    • Ray LaMontagne
    • At first, Ray LaMontagne might strike you as just another breathy-voiced knockoff of folk/rock guitarists like John Mayer and Jack Johnson. But he's actually got a better voice than either, he tell

  • Rock Spectacle

    • 8 out of 10
    • Barenaked Ladies
    • These guys know how to put on a live show, and whomever recorded this knows how to capture one. Rock Spectacle is one of the warmest-sounding recordings I've ever heard, and totally fills a room at a
  • Whatever People Say I Am, That's What I'm Not

    • 8 out of 10
    • Arctic Monkeys
    • Get on your dancing shoes
      You sexy little swine

      -Arctic

  • 2112

    • 10 out of 10
    • Rush
    • We all know it, right? Well, ya just gotta have it. 2112 finally showed Rush out on their own, doing their own thing, and doing it well, IMHO.

Reader Specials

Visit Deals On The Web for the best deals on all consumer electronics, iPods, and more!

News

Apple Threatens to Shut Down iTunes

The Copyright Royalty Board (CRB) is expected to rule on Thursday on an increase in royalties for music purchased online. Apple’s Eddie Cue said that if that forces the iTunes store to lose money, Apple will shut it down, according to Fortune on Tuesday.

At issue is the royalty rates which could rise from 9 cents to 15 cents per song. Eddie Cue, Apple’s executive in charge of iTunes, was reported to have told the CRB that Apple would shut down iTunes rather than raise the price of songs or absorb the proposed increase in royalty fees.

"If the [iTunes music store] was forced to absorb any increase in the ... royalty rate, the result would be to significantly increase the likelihood of the store operating at a financial loss - which is no alternative at all," Mr. Cue wrote to the CRB. "Apple has repeatedly made it clear that it is in this business to make money, and most likely would not continue to operate [the iTunes music store] if it were no longer possible to do so profitably."

The Copyright Royalty Board, which reports to the U.S. Library of Congress, and, among other duties, oversees royalty payments for music. A recent ruling by the CRB increased payments for songs played on Internet radio, and that brought the near collapse of Pandora and Internet radio. Congress had to step in.

It is well known that Apple’s iTunes store make very little music money, enough to operate the service, and that the primary purpose is to sell Apple hardware -- iPods. Apple pays 7 cents of each 99 cents to the record companies. The remainder has to pay for operating expenses and credit card fees.

The record companies argue that rate should increase because digital music is increasingly popular and everyone will prosper from higher prices. A representative of the National Music Publishers Association, David Israelite, also complained: "We don’t make a penny on the sale of an iPod."

It would be interesting to hear why he thinks the record industry should.

Post Your Comments

  Remember Me  Forgot your password?

Not a member? Register now. You can post comments without logging in, but they'll show up as a "guest" post.

Commenting is not available in this section entry.