Looming Royalty Decision Threatens iTunes Store, Apple Hints

eldavojohn writes "You may recall us discussing some legislation about online music. More decisions are being made that may affect how much money Apple must impart to labels and musicians. Right now, it's 9 cents a track — which adds up, when you sell 2.4 billion tracks each year. The Copyright Royalty Board is asking for 15 cents a track (66% increase) and Apple isn't going to agree." Reader scorp1us points out a similar article at CNN; both stories mention that Apple has intimated such a change might cause a complete shutdown of the iTunes Music Store. Update: 10/02 21:03 GMT by T : According to CNet, the rate has been officially frozen at 9.1 cents per track.

Comments

Re:Sweet!

[sbeckstead]

Apple has intimated such a change might cause a complete shutdown of the iTunes Music Store.

Finally! Then we can all go back to sharing music like we were intended to in the first place.

Ya know I get really tired of hearing this crap. You people are assholes! Pay the people what they are due and get over it. Did we not teach our kids that "There Aint No Such Thing as a Free Lunch" well enough? You sound so stupid when you make statements like this. Grow up! It's not weven funny any more as sarcasm!

Now I happen to agree with Apple over this one. The cut they get of each track is a pittance. The music industry needs to stream line their costs and absorb the greater cut paid to the artists.

A miss is as good as a mile

[SuperKendall]

d. You acknowledge that some aspects of the Service, Products, and administering of the Usage Rules entails the ongoing involvement of Apple. Accordingly, in the event that Apple changes any part of the Service or discontinues the Service, which Apple may do at its election, you acknowledge that you may no longer be able to use Products to the same extent as prior to such change or discontinuation, and that Apple shall have no liability to you in such case.

But it's completely ridiculous that I start to talk about them electing to discontinue your right to use the product. Completely.

Yes, completely. Because you confuse the ability for Apple to just shut down what you have now (which they cannot do) with the lack of ability to migrate the music AS IS to new systems going forward. Note they do not say anything about it being illegal to burn music to CD's and re-import.

You can't retroactively revoke access to something that was already sold ...

Nothing was sold. Something was "licensed" temporarily to you in the very loosest sense of the word. By saying "sold" are you saying I now own the rights to the music I buy on iTunes? No, it follows the TOS which I pointed out is full of red alarms.

You are technically right about the music/video being licensed to you, but technically very wrong about the effects of Apple dropping new music sales.

In short, you are fear mongering and trying to raise more of a panic than is deserved by the situation, possibly from a lack of understanding as to the specifics of Apple's DRM implementation but more likely you are an Apple Hater in DRM Hater garb.