iTunes Store threat of closure if music royalties increase by 66%
The US National Music Publishers’ Association has asked for a whopping 66% royalty rate increase on sales of digital music. The rate is due to be set tomorrow by a three judge panel and will apply for the next five years, but it has only just emerged that 18 months ago Apple threatened to shut down its iTunes Store if the NMPA were to get what it wants.
Apple pays an estimated 70% of digital music revenue to record companies which in turn pass on a percentage to artists. It is that percentage that is expected to be changed on Thursday, and Apple has said it is unwilling to raise its 99 cents a song price or absorb a rise.
tags: Apple, copyright, iTunes, NMPA, RIAA, royalties
