William Bridges

The Corporate Royalty Board meets this Thursday to vote on a 66% sales increase for digital music; rising from $0.09 to $0.15 per track. The raises in rates have to be paid by someone, so who is it going to be? Recording Companies? Apple? Or us, the Consumers? According to Maggie Shiels, a reporter from the BBC, researched Apples financial standpoint on such an increase; and the results would be an overall financial loss. The VP of iTunes, Eddy Cue, states “Apple has repeatedly made clear that it is in this business to make money, and would most likely not continue to operate iTunes Store if it were no longer possible to do so profitably.” Now if Apple nor the Recording Companies don’t “face the music”, (pun intended), we could be looking at a Public Backlash of boycotts, protests and more…Thursdays outcome should be an interesting one.

UPDATE - Thursday 10.9.08: The Corporate Royalty Board met today and had voted against the raise digital download rates. Looks as if iTunes can once again breath a little bit easier.