Apple threatens to shut down iTunes if royalty rates rise - GoFuckYourself.com

Just_Dave · 10-15-2008, 11:12 AM

Apple says it has its finger on the big red button and it'll go nuclear if Hollywood and Washington push through higher royalty rates for digital music tracks... a move which may be imminent. Right now Apple pays 9 cents per track it sells to music publishers. Publishers want to hike rates up to 15 cents per track. (That would raise Apple's total payout to various music rights holders from 70 cents to 76 cents per track.) How will it end?

Last year Apple said that closing its phenomenally popular iTunes Music Store would be preferable even to raising prices on downloads. Tomorrow the Copyright Royalty Board is finally expected to rule on whether the National Music Publishers Association can raise its rates, which would force Apple to either back down from its threat or to suck it up and either swallow the added costs or, gulp, raise prices.

Apple of course has the power to make its voice heard here, and the industry must be cringing over whether Apple will back up its threat with action. Apple's iTunes is now the #1 retailer of music in any format, online and off. It even outsells Wal-Mart now.

But is Apple really that crazy? The company is set to sell about 2.4 billion songs this year, dominating the market it pioneered and doing so profitably. Would Apple really cede the market to other competitors like Amazon? Apple hasn't commented lately on its previously outlined threat, though it has also petitioned the Copyright Royalty Board itself: Apple actually wants publisher rates to go down, from 9 cents to 4.8 cents per track.

What will happen? It's all in the lap of the Copyright Board right now. But even if the rate hike does go through, it's hard to imagine Apple shuttering iTunes out of principle. The company's being beat up in the market right now as demand has softened for expensive, high-end computers. If it ditched iTunes, what would it have left?

Vendot · 10-15-2008, 11:13 AM

This is old news..... which has already been posted.

BradM · 10-15-2008, 11:13 AM

They can't pull the plug and everyone knows it.

LiveDose · 10-15-2008, 11:15 AM

That would cause a crazier riot than if Obama loses the election.

Just_Dave · 10-15-2008, 11:23 AM

Quote:

Originally Posted by Vendot

This is old news..... which has already been posted.

didnt know it has been posted before just saw this on yahoo

Violetta · 10-15-2008, 11:32 AM

I have still not bought a song.. I just download apps and podcasts!

96ukssob · 10-15-2008, 11:44 AM

Quote:

Originally Posted by BradM

They can't pull the plug and everyone knows it.

definitely. if anything, they will raise the rates up a few cents per song. IMO, apple probably wants this to go through so they have a reason every year to raise the price of music by one or two cents

Indecisive · 10-15-2008, 01:17 PM

It's an idle threat. Apple is making so much profit on iTunes that they can afford 6 cents more.

$0.99 per song is roughly what a CD costs in a retail store now. Apple cuts out the cost of: 1) the CD case 2) the case liner, 3) buying and burning the CD, 4) shipping the CD to the point of sale, and 5) all the overhead of a network of retail stores. And they want you to believe they can't afford to pay 6 cents more to the artist?

V_RocKs · 10-15-2008, 02:12 PM

Would be interesting.. Would it also no longer release the lock on songs already downloaded?

D Ghost · 10-15-2008, 03:46 PM

good, fuck the RIAA and the labels, raping the artists to death

tiger · 10-15-2008, 04:18 PM

Quote:

Originally Posted by Indecisive

It's an idle threat. Apple is making so much profit on iTunes that they can afford 6 cents more.

$0.99 per song is roughly what a CD costs in a retail store now. Apple cuts out the cost of: 1) the CD case 2) the case liner, 3) buying and burning the CD, 4) shipping the CD to the point of sale, and 5) all the overhead of a network of retail stores. And they want you to believe they can't afford to pay 6 cents more to the artist?

Trust me that extra 6 cents won't be going to the artist.

tony286 · 10-15-2008, 04:19 PM

its not going any where

Axeman · 10-15-2008, 04:22 PM

Quote:

Originally Posted by tiger

Trust me that extra 6 cents won't be going to the artist.

Exactly if the money was going to the artists that would be one thing, but we all know there is no chance that happens.

gideongallery · 10-15-2008, 06:18 PM

that can't be real so apple sells a song for 99 cents and only pays the artist 9 cents of royalty.
and i thought the record companies raped the artist

wootpr0n · 10-16-2008, 12:22 AM

Let them shut it down.

We'll just get our songs the old fashioned way - Peer-2-Peer.

Fucking RIAA bastard motherfucking cocksuckers.

Fap · 10-16-2008, 12:23 AM

i hate steve jobs

Nautilus · 10-16-2008, 12:29 AM

If they only pay 9 cents to artists, where the rest 90 are going?

Manowar · 10-16-2008, 12:42 AM

prices will just go up

NickB. · 10-16-2008, 05:39 AM

Quote:

Originally Posted by Rockatansky

I have still not bought a song.. I just download apps and podcasts!

same here - loving the podcasts

EscortBiz · 10-16-2008, 05:43 AM

another idea is ask the customer if he wants to add a few cents for the artists, most will say 0 but some will say 15 cents 50 cents etc and it will all add up, like a donate button

DamianJ · 10-16-2008, 06:04 AM

Um, this is old news, it didn't happen, so calm down eh?

10-15-2008, 11:15 AM	#4
LiveDose Show Yer Tits! Industry Role: Join Date: Feb 2002 Location: Somewhere Out there... Posts: 25,792	That would cause a crazier riot than if Obama loses the election. __________________ Scammer Alert: acer19 acer [email protected] [email protected] Money stolen using PayPal

10-15-2008, 11:32 AM	#6
Violetta Affiliate Join Date: Jul 2004 Posts: 28,735	I have still not bought a song.. I just download apps and podcasts! __________________ M&A Queen

10-15-2008, 01:17 PM	#8
Indecisive Confirmed User Join Date: Aug 2005 Location: Vancouver, BC Posts: 53	It's an idle threat. Apple is making so much profit on iTunes that they can afford 6 cents more. $0.99 per song is roughly what a CD costs in a retail store now. Apple cuts out the cost of: 1) the CD case 2) the case liner, 3) buying and burning the CD, 4) shipping the CD to the point of sale, and 5) all the overhead of a network of retail stores. And they want you to believe they can't afford to pay 6 cents more to the artist? __________________ ICQ: 334404605

10-15-2008, 06:18 PM	#14
gideongallery Confirmed User Join Date: Aug 2003 Posts: 7,082	that can't be real so apple sells a song for 99 cents and only pays the artist 9 cents of royalty. and i thought the record companies raped the artist __________________ “When crimes occur through the mail, you don’t shut the post office down,” Steve Wozniak

10-16-2008, 12:22 AM	#15
wootpr0n Confirmed User Join Date: Apr 2007 Posts: 250	Let them shut it down. We'll just get our songs the old fashioned way - Peer-2-Peer. Fucking RIAA bastard motherfucking cocksuckers. __________________ Sig too big http://www.gofuckyourself.com/gfy_faqs.html Want to use a large banner in your sig??? Contact Eric about getting on as an advertiser - eric AT adult.com

10-15-2008, 11:12 AM	#1
Just_Dave Its almost time Industry Role: Join Date: Dec 2002 Posts: 13,009	Apple threatens to shut down iTunes if royalty rates rise Apple says it has its finger on the big red button and it'll go nuclear if Hollywood and Washington push through higher royalty rates for digital music tracks... a move which may be imminent. Right now Apple pays 9 cents per track it sells to music publishers. Publishers want to hike rates up to 15 cents per track. (That would raise Apple's total payout to various music rights holders from 70 cents to 76 cents per track.) How will it end? Last year Apple said that closing its phenomenally popular iTunes Music Store would be preferable even to raising prices on downloads. Tomorrow the Copyright Royalty Board is finally expected to rule on whether the National Music Publishers Association can raise its rates, which would force Apple to either back down from its threat or to suck it up and either swallow the added costs or, gulp, raise prices. Apple of course has the power to make its voice heard here, and the industry must be cringing over whether Apple will back up its threat with action. Apple's iTunes is now the #1 retailer of music in any format, online and off. It even outsells Wal-Mart now. But is Apple really that crazy? The company is set to sell about 2.4 billion songs this year, dominating the market it pioneered and doing so profitably. Would Apple really cede the market to other competitors like Amazon? Apple hasn't commented lately on its previously outlined threat, though it has also petitioned the Copyright Royalty Board itself: Apple actually wants publisher rates to go down, from 9 cents to 4.8 cents per track. What will happen? It's all in the lap of the Copyright Board right now. But even if the rate hike does go through, it's hard to imagine Apple shuttering iTunes out of principle. The company's being beat up in the market right now as demand has softened for expensive, high-end computers. If it ditched iTunes, what would it have left?

10-15-2008, 11:13 AM	#2
Vendot Confirmed User Industry Role: Join Date: May 2002 Location: Malaysia Posts: 3,376	This is old news..... which has already been posted.

10-15-2008, 11:13 AM	#3
BradM Confirmed User Join Date: Dec 2003 Location: 1123,6536,5231 Posts: 3,397	They can't pull the plug and everyone knows it.

10-15-2008, 02:12 PM	#9
V_RocKs Damn Right I Kiss Ass! Industry Role: Join Date: Dec 2003 Location: Cowtown, USA Posts: 32,422	Would be interesting.. Would it also no longer release the lock on songs already downloaded?

10-15-2008, 03:46 PM	#10
D Ghost null Industry Role: Join Date: May 2006 Posts: 9,820	good, fuck the RIAA and the labels, raping the artists to death

10-15-2008, 04:19 PM	#12
tony286 lurker Industry Role: Join Date: Aug 2002 Location: atlanta Posts: 57,021	its not going any where

10-16-2008, 12:23 AM	#16
Fap Just Du It Industry Role: Join Date: Feb 2004 Posts: 12,094	i hate steve jobs

10-16-2008, 12:29 AM	#17
Nautilus Confirmed User Industry Role: Join Date: Sep 2002 Posts: 1,631	If they only pay 9 cents to artists, where the rest 90 are going? __________________ . . FerroCash - 50+ quality niche paysites to promote \| 100K+ FHGs \| Check recently added galleries New sites \| Pantyhose \| Nylon \| Shemale \| Strapon \| Lesbian \| Mature/MILF \| Anal \| Old&Young \| Gay \| Feet Morphing RSS feeds - check them at the Official blog\| Page Peels (Sample 1 : Sample 2) Wish to review or evaluate our sites before promoting them? Contact me for free password. ICQ: 38.89.22.76 e-mail: support AT ferrocash.com

10-16-2008, 12:42 AM	#18
Manowar jellyfish Join Date: Dec 2003 Posts: 71,528	prices will just go up

10-16-2008, 05:43 AM	#20
EscortBiz Fuck Checks, CASH only! Join Date: May 2002 Location: New York City Posts: 19,422	another idea is ask the customer if he wants to add a few cents for the artists, most will say 0 but some will say 15 cents 50 cents etc and it will all add up, like a donate button __________________ Spanking, Medical Fetish, Sleeping, Strap-on Anal Lesbians, Girls Fucking Guys, Handjob site REAL HOT, Shemales, Anal and Ass Licking sites 100% Real EXCLUSIVE with amazing retention, ccbill payouts, lots of content FREE FTP HOSTING Promote the largest and oldest member paid escort site, Converts 10 times better then any dating site, CCBill payouts ICQ# 158802076

10-16-2008, 06:04 AM	#21
DamianJ Too lazy to set a custom title Industry Role: Join Date: Jul 2006 Location: A magical land Posts: 15,808	Um, this is old news, it didn't happen, so calm down eh?