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Apple to music industry..

1280 Views 2 Replies 2 Participants Last post by  ekim68, 
ekim68
Apple to music industry - It’s our way, or iTunes gets the bullet!

The National Music Publishers’ Association wants to see an increase in the royalty rates paid to its members for songs purchased through online music stores (the association wants the rates raised from 9 cents to 15 cents a track). Apple doesn’t like the sound of this and is willing to shut down iTunes rather than raise the 99 cents a song price or absorb the higher royalty costs. Is this all just hot air, or could Apple really shut down iTunes?

http://blogs.zdnet.com/hardware/?p=2670&tag=nl.e550
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TechGuy
It's a bluff -- there's no way Apple would stop selling music. That said, the members are also not going to get an additional 6 cents (over 60% increase) for each song.

According to the same article:
Let's put the numbers into perspective. Out of ever dollar collected by Apple, 70 cents goes to the record company, out of which 9 cents goes to the copyright holder.
Click to expand...
Why doesn't the record company take part of that extra 6 cents out of their 70% cut? I don't think Apple is going to take the extra 6 cents out of their 30, but I think they'd swallow some of that long before they'd stop selling.
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ekim68
TechGuy said:
It's a bluff -- there's no way Apple would stop selling music. That said, the members are also not going to get an additional 6 cents (over 60% increase) for each song.

According to the same article:

Why doesn't the record company take part of that extra 6 cents out of their 70% cut? I don't think Apple is going to take the extra 6 cents out of their 30, but I think they'd swallow some of that long before they'd stop selling.
Click to expand...
Well said.. I thought it was a shot over the bow..;) After that, negotiations...
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