Filed under: Apple Corporate, iTS
Royalty rate stays the same, iTunes Store still open
The U.S. Copyright Royalty Board decided today to keep rates the same for digital music stores, kneecapping Apple's threat to shut down the iTunes Store rather than operate at a loss.
The three-member board kept the royalty rate at 9.1 cents, and mandated a 24-cent rate for ringtones. The board has never before established mechanical rates for digital files.
"We're pleased with the CRB's decision to keep royalty rates stable," said an unnamed Apple spokesman.
The popularity of Eddy Cue's statement that Apple would shutter the iTunes Store apparently had an effect on the board. "Sure it was posturing," said a music industry source, according to CNET. "I don't think Apple would have gone out of business but a statement like that from the biggest music retailer is going to carry some weight."
[Via CNET.]




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