Apple Warns to Close Down iTunes Store

Apple Warns to Close Down iTunes Store

Apple has threatened to shut down iTunes store as it fervently disagree with the increase in song rate.


The Copyright Royalty Board is considering of making an incremental change on royalty rates coherent with the gradual increase every  two or three years since 1981. The federal agency has started talks since January which stemmed from the increase in digital downloads steered by Apple's iTunes store.



Digital downloads soared 38 percent from 2006 to 2007, comprising 23 percent of the market for recorded music. Apple maintains that raising the song rate from 99 cents each will most likely put the App store profitability at risk. Apple's vice president of iTunes, Eddy Cue, said, "Apple has repeatedly made clear that it is in this business to make money and most likely would not continue to operate (the iTunes store) if it were no longer possible to do so profitably."