Tag Archives: music royalties

Will Apple close iTunes rather than pay composers?

Apple is threatening to close the iTunes Store if music publishers, singer/songwriters and composers manage to get their royalty level raised – in fact, the company is fighting to depress that royalty even more.

The Copyright Royalty Board in the US will make its decision tomorrow. The National Music Publishers’ Association wants rights-holders to be paid 15 cents per track, which Apple (and the ever-friendly music labels, come to that) vehemently opposes.

In a statement filed with the board during the investigative phase of the process, iTunes head Eddy Cue said: “If the iTunes music store was forced to absorb any increase in the royalty rate, the result would be to significantly increase the likelihood of the store operating at a financial loss – which is no alternative at all.”

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