iTunes Store and Apple’s DRM Safe Haven In Jeopardy
September 30, 2008 · Print This Article
Fortune has an article on an upcoming ruling by the Copyright Royalty Board where artists are proposing a 6 cent (66%) hike in the per-track royalties they receive for digital music retail sales. Needless to say, Apple is not happy with that situation and has indicated that the continued operation of the iTunes store would be questionable at best whether the resolution is passed:
“Apple has repeatedly made it clear that it is in that business to construct money, and most likely would not continue to operate
[the iTunes music store] whether it were no longer possible to do so profitably.”
We’ve heard for years that Apple operates the store on a tight margin and it is conceivable that that royalty increase could eat away at the per-song profit to the point where running it would be economically unwise.
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Orginal post by Bob Rudis
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