.

Apple Talks Tough, Threatens To Close iTunes If Royalty Rate Rises

October 1, 2008 2:15 PM ET

A ruling by the Copyright Royalty Board tomorrow could spell trouble for Apple's iTunes. The National Music Publisher's Association has asked for a 66 percent increase on the royalty rate paid out on the sales of digital music — from nine cents per track to 15 cents. In a statement submitted to the board last year, Apple warned that they may shutter digital-music service iTunes if the request was approved. Apple already pays 70 cents of each song purchase to the record companies, who aren't willing to pay for the increase themselves. Since they would essentially be operating the service at a loss, Apple would rather shut the store down than raise their prices beyond 99 cents per track. While it's hard to fathom that Apple would close the world's most successful digital music store — possibly cutting into the sales of iPods and iPhones, where they make their real money — the fee hike would definitely have some adverse effects, most likely on the consumers' wallets.

Related Stories:
Wal-Mart Download Store Stops Using DRM
AC/DC Snub iTunes
MySpace Music Launches

To read the new issue of Rolling Stone online, plus the entire RS archive: Click Here

prev
Music Main Next
Around the Web
Powered By ZergNet
Daily Newsletter

Get the latest RS news in your inbox.

Sign up to receive the Rolling Stone newsletter and special offers from RS and its
marketing partners.

X

We may use your e-mail address to send you the newsletter and offers that may interest you, on behalf of Rolling Stone and its partners. For more information please read our Privacy Policy.

Song Stories

“Hungry Like the Wolf”

Duran Duran | 1982

This indulgent New Romantic group generated their first U.S. hit with the help of what was at the time new technology. "Simon [Le Bon] and I, I think, had been out the night before and had this terrible hangover," said keyboardist Nick Rhodes. "For some reason we were feeling guilty about it and decided to go and do some work." Rhodes started playing with his Jupiter-8 synth, and then "Simon had an idea for a lyric, and by lunchtime when everyone else turned up, we pretty much had the song." The Simmons drumbeat was equally important to the sound of "Hungry Like the Wolf," as Duran Duran drummer Roger Taylor stated it "kind of defined the drum sound for the Eighties."

More Song Stories entries »
 
www.expandtheroom.com