Absurd Hike in Royalty Rates Might Lead to iTunes Closure: Apple



+ Add a Comment


In all honesty I really hope it dies.  In b4 iTards.



Food for thought people.... this royalty price hike will affect all downloaded music sources, including Amazon, Zune store, etc.  I hope Apple wins in their bold "brinksmanship" stand with the MPAA, as they are usually unreasonable Aholes as we all know.

 The article mentions a 66% royalty increase.  That does NOT mean that songs will go from say $1 per song to $1.66.  The article should have mentioned what the royalty is NOW in real dollars to see how "unreasonable" a 66% increase would be.  Is the current royalty 1 cent? 5 cents?  10 cents out of a $1 purchased song??  We NEED to know, otherwise you are acting as Apple's mouthpiece in your article.  If it's only a few cents, then Apple most likely will not go broke, and we most likely won't pay much more per song.

I personally like Amazon MP3 downloads over Zune or iTunes, as Amazon songs are DRM free (don't cause problems with hardware) and a reasonable price.  I DO NOT STEAL MUSIC and neither should you.  Stealing music (filesharing), hurts the artists, and hurts your integrity. 

If this royalty increase goes to the artists, then it might be OK if the increase is a few more cents.  If it goes mostly to the MPAA and their legal lackeys, then heck with that.  I'll start buying CD's again and ripping the (non DRM) songs to my Zune and iPod again.  If CD prices go up too much too, then I'll just stop buying them and listen to the radio!



If I'm not mistaken, the current publisher royalty is $.09, making a 66% increase about $.06 for a grand total of $.15 (15 cents).

We do need to keep in mind however that we do not need to "see in real dollars how "unreasonable" a 66% increase would be" because it's percentages that matter in this.  It amounts to a 66% increase in royalty overhead for apple.



I use Amazon digital downloads anyway. Much better than itunes store for me, no DRM.  And carry almost everything.



It seems the DRM/Hardware Lock approach to music is collapsing already.  Itunes has a huge following and have captured the market and the artist and labels have made apple rich, now they want a piece of the pie too.  Apple can only remain closed for so long before they run out of customers,  everything about apple is over priced and over hyped. I am not buying an ipod and certainly not buying mp3s.

Like others have said I buy the CD and rip it. Why pay for compressed music. Sell WAV files or lossless music formats like FLAC.



Since the music industry seems pretty intent on burying every internet medium dedicated to music I don't see this as a suprise. I don't think they will go through with it and it's just an empty threat to Apple. It's easy for groups like the RIAA, NMPA etc. to bully small groups like Pandora, but going up against the number one digital outlet is probably a stupid thing to do. Force closure on one and they'll just be increasing piracy again. Every other service is still awkwardly designed compared to the iTunes interface with an iPod, and when you make things more difficult legally, people will just choose the easiest way even if it's illegal.

Either way I don't care. I buy CDs and rip them to my iPod.



They got too much going into this to just shut it down. I really wouldn't see anything or care that much because for me the only good thing that comes from the store is podcast integration and the ease of finding what I want. Another thing-it's what sells the ipod, so they would kill 2 birds with one stone.



For some reason I get the feeling Steve Jobs wouldn`t dare make a threat he`s not willing to follow through on. I feel like they would close the store. It`s a scary thought for some, but for me it`s comforting if Apple actually took that step. For once Apple would be on our side. In a weird sense of things.



I am not a Steve Jobs or Apple fan, I wouldn't touch a Mac or iPod-Phone with your hands.  However, Steve Jobs strikes me as the kinda guy that would close that down in a bloody heartbeat if he threatens it.  Gotta give him props for that, I don't think he says stuff he doesn't absolutely mean.  These people are just being greedy and showing that they have no idea how the marketplace actually works.  They are trying to push the price to a point where people will decide its better to just pirate it instead.  Great move people.  Dumbasses.



Knowing Apple, they'll just raise their prices more, and everyone would still buy songs from them, because [avg consumer]iPods only work with iTunes.[/avg consumer]

Really though, people would still buy stuff even if it was $1.66 a song, especially if it's DRM-free. 

I would just get my songs from eMusic or Napster anyway.



I can see how you would think that the average consumer would just go with the change and keep buying music from iTunes even if they raise their prices, but from seeing what they did in the past with NBC I doubt they would do that. If you (or any other reader) would recall, NBC wanted to raise their prices from $1.99 to $2.99 in the Music Store and target hit shows like Heroes. Apple said they would not support the that move and they both split. Less than a year later, NBC is back with apple and providing regular priced shows at $1.99 and HD shows at $2.99.

Now on the music front Apple does offer 99¢ songs that are both DRM and Non-DRM and also songs that are of a higher bitrate for $1.99. Amazon, for example, sells their songs for 89¢ in mp3 format and DRM-free. They know that most PMP consumers users have iPods/iPhones so they provide software to download the music you buy and add it to your iTunes list with album art.

Personally, since they started doing this I have been buying my music from them and have found great deals on albums saving me $2-$3 compared to iTunes. Even the new T.I. album that just came out was on sale for a day or two for $3.99.

Sorry to rant on, btw :P

Log in to MaximumPC directly or log in using Facebook

Forgot your username or password?
Click here for help.

Login with Facebook
Log in using Facebook to share comments and articles easily with your Facebook feed.