iTunes - Not Shutting Down!
Filed under: Tech Talk > Business Blitz
As we mentioned yesterday, the Copyright Royalty Board in Washington, D.C. was considering a motion to increase the royalty rate paid by Apple to music publishers and the record labels from 9 cents to 15 cents.
That caused Apple to threaten to shut iTunes down should they be forced to pay this increased rate.
However, on Thursday the Copyright Royalty Board rejected the raise in royalty payouts.
It didn't, however, back up Apple's suggestion of lowering rates.
So, as of now, publishers will continue to get their 9 out of the 99 cents iTunes charges for songs.
Eddy Cue, iTunes vice president said that if the royalties were raised to 15 cents, then it would cause song sales to go down and Apple to probably operate at a loss.
Cue said, "Apple has repeatedly made clear it is in the business to make money and most likely would not continue to operate iTunes store if it were no longer possible to do so profitably."
So basically Apple wants to pay artists less for them to make more.
It happens to a lot of big companies. When they make it really big, they forget about the little people and only worry about their pocketbooks!
[Image via AP Images.]
FUCKIN" GREEDHEADS!
Well good, I can sleep easy tonight with that info.
So Perez where's the paper you owe me for gettin' ya all these hater clicks?
Or its just good business sense. What would they want to operate at a loss???? Would YOU?
I just dropped green eyes off at the pool.
REMEMBER:
OBAMA = BIG TRAUMA
Has anyone ever bought anything off the ads on here? I've never even read one!
Re: harrybalsac – though I support McCain, I was tempted to click to order the drill baby drill t-shirt. good times.
"So basically Apple wants to pay artists less for them to make more." Wow Perez, never heard of that concept before? Don't you try to pay less for things so that you can have more? I'll bet you charge your advertisers the same as you used to right? When your business grows and you can charge more you do, don't you? I don't think Apple forces any artist to be included in their ITunes. Most artists need Apple, Apple doesn't need them.
LIME WIRE BABY!
Re: harrybalsac – Not one Harry. So whoever is paying $4k to dough boy here is getting ripped off.
You're still full of shit Mario. Apple does NOT get 90 cents revenue per track, the way you make it sound. They pay 56 cents per track sale to the label, on top of the 9 cents to the artist/publisher. After internal expenses, they're profiting a couple pennies on the dollar for iTunes track sales. That is not greed. The 99 cents price is reasonable. If the artist wants more, they should be getting it from the label, not trying to raise the overall track price.
Re: jkf – You see JFK what dough boy here doesn't get is that he lives in a fantasy world of stupidity. He is basically stuck on stupid. What is not good for others is certainly good for him and vice versa. He's just a dumb mf'er.
well, thank god for that!
Man, hit the surf!! Waves are up!!! Beach 90.., then Malibu!!!!
Perez, I'm sorry but you have no clue what you are talking about here. Stick to celebs.
q
i'm sure no one will read this, but i need to go on a limb here and defend apple. statutory rate for album sales is 9.1 cents per track. publishers are being paid the same for songs on iTunes as they are on album sales. this isn't a situation where a corporation is being greedy.
and ACTUALLY, publishers get a higher payout from iTunes that they'd been getting for regular album says. usually, record labels have a controlled composition clause in their deals with artists stating that they won't pay the statutory rate on songs that were co-written by the artist. however, since the iTunes thing happened so quickly, labels went ahead and just started paying the statutory rate for digital downloads - meaning writers actually get MORE money when their songs are purchased on iTunes than when their songs are purchased on a CD in-store.
get your facts straight before you take sides
Re: rebelprince26 – THAT WAS INTERESTING I DIDN'T KNOW THAT! THAT'S WHY SAY LIMEWIRE BABY!
Re: Toasty! – Toast - when this dough boy gets away for celebs he's like Hussein Obama without a tele prompter
Hey DICKWEED! This is America! It is built on Freedom & Capitalism. Your slamming Apple for running a for profit business? Thought you of all people would appreciate that being as that your Cuban and all??? THIS IS AMERICA…GO FORTH AND PROSPER!!!!
BOOYAH!
Well no shit sherlock. If you had to run this site at a loss it wouldn't exist either.
Perez, your ignorance is monumental and never-ending. Why on earth would any company not want to make money? How is Apple supposed to pay their employees if they don't make a profit? Apple also answers to their Board of Directors and their stockholders. You obviously don't own any Apple stock or you'd be the first one screaming about the whole situation and backing up Apple. How about you tell your advertisers to lower the amount they're paying you and then you come back and trash talk Apple? Dumbass!!
BUTT CRACK!
Not so bright are you Perez….."So basically Apple wants to pay artists less for them to make more." Well duh, did you even read what ya wrote…?! That's where the '"Apple…is in the business to make money…." comes in!
Perez, I own a decent sized consumer products company that advertises its products on the internet and sells them from a website.
Everytime we lower prices substantially, we get an increase in sales that does two things, first, it grows total income because sales jump by a larger percentage than the price decrease. Second, the increased sales MAKE me hire more people to service the customer and ship the goods. So I put more American families to work.
Now obviously this cannot always work and there comes a time when you have to stop because you need a certain margin. I don't know Apple's financial numbers for iTunes. But, you shouldn't discount the concept of making less to sell more to make more. In the right conditions, it works.
Why don't you stop pumping Obama/Biden for 5 seconds and try to talk to Apple about this and see if you can get an interview? Who knows, maybe the consumer can pay less and the record companies and artists can make more while letting Apple increase revenue and put more people to work.
Economics works, even in a partisan, political world. Test it before you bash it.
yet another stupid post. the other posters are right, you have no idea what you're talking about - AGAIN.
Not really Perez. Basically, you're wrong. Artists aren't the issue, the issue is the publishers, not the artists. Not to mention without iTunes, nobody was getting paid anything, just ripped off. Remember that?
I just got back from swimming…………..I feel so refreshed!
actually its just business sense. If they have to raise the price of each song to, say, $1.05, people will be less likely to buy the songs, revenue will go down, the itunes store won't be profitable, and if it continues to not be profitable, the store will eventually have to shut down entirely. It's not greedy for a business to want to continue making a profit.
Oh please, do you really expect Apple to operate itunes at a loss??