Apple To Shut Down iTunes?

Apple could shut down its iTunes music store this week, if a verdict from the US Copyright Royalty Board forces the company to pay higher royalty rates.

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Apple could shut down its iTunes music store this week, if a verdict from the US Copyright Royalty Board forces the company to pay higher royalty rates.

A ruling is expected by the board today (October 2) on an application by the National Music Publishers' Association to raise the royalty fees paid to its members on songs purchased from online music stores including iTunes.

The association wants to increase rates by 66 per cent, from nine cents to 15 cents per track, whereas Apple wants a decrease to 4.8 cents per track, reports CNN.

In a statement submitted to the board last year, iTunes vice president Eddy Cue said that Apple would not stand for an increase:

"If the [iTunes store] was forced to absorb any increase in the... royalty rate, the result would be to significantly increase the likelihood of the store operating at a financial loss - which is no alternative at all," the statement read.

Cue added that Apple would have no qualms about shutting iTunes down if it was not making enough money.

"Apple has repeatedly made it clear that it is in this business to make money," he said, "and most likely would not continue to operate [the iTunes store] if it were no longer possible to do so profitably."

Research analysts Piper Jaffray predict that Apple will have an 85 per cent share of the digital music market this year.

Credits for the report to Nme.com.

217 comments sorted by best / new / date

    Spay
    Yes, yes, and yes. I'll stop 'stealing' if they give the money to the people who deserve it and not the people who are on 'the top of the foodchain'
    a7xf@n43v3r
    I doubt people care. Many people around me use limewire. But I buy the CD's. One time I tried iTunes and when I bought the song it kept FUCKING UP
    Aceman_196
    Lil Macker wrote: Hmm... I wouldn't really care about iTunes not paying enough, half the artists today get paid way too much when heros such as firemen and paramedics get paid hardly anything for doing something a lot better. I think they need to sort out the real problems, like piracy, it started with copying a vinil to a cassette, and now downloading. I mean, they get paid too much, but they still need to get paid.
    Paramedics and firefighters hardly get paid anything what are you smoking.
    hnfan4eva
    limewire. itunes can shut down forall i care, the songs there are already way to much.(and yet i continue to but from them...?)
    ZedLeppy
    This will be a leap forward in music if this happens, I'd say. Buying internet via the internet, or just downloading it illegally is killing the music industry incredibly. The only bands that sort of make money off of internet music is the Jonas Brothers or some other mainstream crap. We need to bring music back to its roots where you listen to an album with your friends and experience it within society, rather than at home, by yourself, illegally. /rant
    f1sk
    ZedLeppy wrote: This will be a leap forward in music if this happens, I'd say. Buying internet via the internet, or just downloading it illegally is killing the music industry incredibly. The only bands that sort of make money off of internet music is the Jonas Brothers or some other mainstream crap. We need to bring music back to its roots where you listen to an album with your friends and experience it within society, rather than at home, by yourself, illegally. /rant
    enough of the /rant that is retarted also it is not killing the music industry its helping it, i can buy shit that there is ordinarily no way I would be able to get the cd for, also its good because since they arent making jack for money off of it money is no longer a goal, with technology its easy as hell to record your own band yourself and post it on itunes also i doube itunes would close it down they are making so much dough off of it
    Tubyboulin
    Well thats smart. Take away the legal places to download it, and leave all the file sharing ones. :p
    darkfire_storm
    Irnmaiden4life wrote: god apple is so stupid with their billion dollar corparations being all corparationy and screwing artists over and now whating to make even more money
    you know, Apple actually has a good deal to do with helping artists out. think about it. in all of their commercials, they use some quirky song by a band that isn't mainstream, and then a few weeks later, the song is extremely popular and the band is famous. i think that worked out for that Feist chick and that other band... the Ting-Tings or something like that? or at least i'd never heard of either of them before the apple commercials use them.
    GuitarFreak664
    Minderbinder wrote: Apple has nothing to complain about. They buy the songs for something like 11 cents, and then turn around and sell it for 99 cents! I refuse to but from them just for that reason. And they they complain about losing money.
    How is that any different than a CD? There are still all the royalties and everything there. A CD isn't worth $17 but filled with music it is. Obviously the Apple has to make a profit if they are paying 60 or 70 cents to the artists and record labels. If they sold for half as much as they do now, then Apple would have to pay artists to give away their songs to their customers. Think about it bro.
    deathofagod
    apple have managed to make themselves look like total ****s, they are one of the richer companies around, and are still saying they are in this to make money, have they ever thought about selling for consumers and not just for their own pockets oh no I forgot rich people don't think like that, it's strange, being rather poor myself, for some reason a lot of my money is shared with my friends on nights out if they're short for drinks or whatever, cos I want everyone to have fun not just myself, I bet a rich **** wouldn't do that. sorry for the random rant
    crazymanbigman
    jetfuel495 wrote: archangelseren wrote: not make enough money.... 85% share? what the hell those apple people been smoken... kurt cobains ashes?
    You. Fucking. Fit. Bitch Lmao.
    CoolDudeMorgasm
    Well you can't blame Apple for wanting to make money. No one in their right mind would knowingly run their business at a loss.
    lachlandavis
    I do not understand how they could POSSIBLY operarate at a LOSS when they are giving 9CENTS to artists whilst charging over a dollar a track!! What are they spending the money on?
    catchy phrase
    No way in hell will iTunes shut down. It's just bluster by Apple to try and scare the publishers into complying. A service with 85% market share doesn't just shut down overnight.
    fagelamusgtr
    I hope it closes down. If it doesnt, i hope they atleast have to start paying a higher percent to the artist. They deserve it a lot more than the corporate hogs who practically "copy and paste" the artist's music and make most of the money.
    travd92
    as long as the music i have previously purchased doesn't disapear, i don't have a problem with this. i don't use it anymore.
    Oneordinarylife
    People are so dumb. Read the article. Apple is not getting rid of the iTunes software, just the store. Everyone that is wondering what they could do with their iPods, they are not getting rid of iTunes itself. Shame on UG for a deliberately misleading headline too.
    41plus182
    deathofagod wrote: apple have managed to make themselves look like total ****s, they are one of the richer companies around, and are still saying they are in this to make money, have they ever thought about selling for consumers and not just for their own pockets oh no I forgot rich people don't think like that, it's strange, being rather poor myself, for some reason a lot of my money is shared with my friends on nights out if they're short for drinks or whatever, cos I want everyone to have fun not just myself, I bet a rich **** wouldn't do that. sorry for the random rant
    You have absolutley no idea what you are talking about. Business isnt pure profit. It ACTUALLY COSTS MONEY TO RUN A BUSINESS. Why would anyone run a part of a company if they were just going to report losses? It would be pointless. I'm sorrry if i'm being harsh but you can't say how a rich person thinks when obviously aren't one. On another topic, ppl are also saying "well i only buy cd's it doesnt affect meh lolololol!!!" Thats not true. When the digital downloading industry starts losing business (they would indefinitley if iTunes shut down), CD sales go up, and CD retailers can raise their prices. Then youll be whining that CD prices are too high.
    manson_6sic6
    titsmcgee852 wrote: jetfuel495 wrote: archangelseren wrote: not make enough money.... 85% share? what the hell those apple people been smoken... kurt cobains ashes? Fucking win.
    hahaha nice one
    -xCaMRocKx-
    NMPA complains about people pirating music. NMPA complains about people legally buying music because they don't make enough money off it. NMPA forces one of the biggest worldwide music stores to shut down. NMPA wonders why pirating increases.
    MetalheadMark
    I'm gonna be pissed if iTunes is shut down. Hyperpissed. Megapissed. Ultramegahypersuperfreakignpissed.
    masterchief44
    jetfuel495 wrote: archangelseren wrote: not make enough money.... 85% share? what the hell those apple people been smoken... kurt cobains ashes?
    + Infinite amounts That's hilarious because both of these stories are ridiculous. The artists deserve EVERYTHING made by their music. And Courtney/Frances definitely should legally get his ashes back, immediately.
    False_God
    meh not bothered. but I do feel like iTunes closing will encourage more p2p sharing thus artists getting no money lol. Music industry is slowly stabbing itself to death and they will realise it in a few years.
    lank81
    That's why Trent Reznor and Radiohead hopefully change the face of music. Sell your stuff on your own either from your site or somewhere like Amazon. It might be harder for smaller bands / artists but at least you get the money you deserve, not the corporate machine.
    pootoob
    But... It doesn't cost to operate a website, or a program , only once in a while when they pay developers to upgrade...
    randyaintdead82
    as long as i got a library of music on my comp. so i can upload CDs on my iPod, (still listen to the CDs when I have a chance)I could possibly care less
    destijl
    apple make FAR too much money from iTunes to shut it down, get this crap off of news woot for people who buy vinyl HELL YEAH
    Phoenix_24Leas
    I buy CD's and use torrents as well but itunes occasionally has stuff you can't even get through torrents i.e. Faunts or a couple of Muse B-sides. Itunes does have a few things going for it and I doubt they would close an operation that big. haha not unless the economy started to collapse or a shit load of banks folded or something haha...
    cm_punk_fan
    Spay wrote: Yes, yes, and yes. I'll stop 'stealing' if they give the money to the people who deserve it and not the people who are on 'the top of the foodchain'
    i think thats why you buy stuff cheaper off of itunes than in real life(like going to a music store) cause thats how they feel
    Minderbinder
    Apple has nothing to complain about. They buy the songs for something like 11 cents, and then turn around and sell it for 99 cents! I refuse to but from them just for that reason. And they they complain about losing money.
    Ibzman
    They may eat my shit. They better consider giving more to the artists or I buy a Zune, f'ers.
    madman885
    JRowe3388 wrote: Why do people assume an iPod can only play music bought on iTunes?
    that's not what I'm saying. I'm suggesting that this would cause apple to stop making iPods altogether, which would make sense because the only thing that drove the iPods to sell was the success of the iTunes store and that the iPod was the only device that could play the iTunes Store's DRM-protected files.
    qotsa1998
    This is big, but not so much for consumers. Its almost like taking Wal-Mart out of the retail chain equation. Less competition from this giant means that prices might rise, and alot of TV shows and unsigned artists will lose money. Where are Tonecore artists gonna go? Although its not all bad. CD sales might get a boost b/c of this.
    MTVget0FFtheAIR
    i have never been one to buy from itunes anyway. over the past, if i wanted to get new music, i would either get it illegally or buy the cd in a store. now i have manned up and stuck to buying cds or listening to music on youtube. i get by just fine. imo, we don't need itunes to buy mp3s, but i'm quite materialistic.
    metallica_121
    xxYoungDimexx wrote: petey gunnz wrote: w00t for ppl who still buy cds give me a hell yeah HELL YEAH! down with itunes I still buy CD's.. HELL YEAH!..
    i'm used to online music, but over the past couple of months i've been buying all cd's and some bands these days (the berzerker as an example) are leaving the record industries and starting their own company where they get MUCH more profit off the cd
    notsee
    Well, buying tracks off Itune's is a rip anyways. It is slightly cheaper, but you don't get a hard copy of the disc, and you can only play .AAC files over one medium, the Ipod. . .
    Megadeth2011
    Ok? Ill just use Amazon... they have the same stuff Itunes does at the same price. I dont download most of my music. I prefer CDs. And I cant see the price of CDs going up... it didnt change when Itunes was released.
    guitargodwannab
    Spay wrote: Yes, yes, and yes. I'll stop 'stealing' if they give the money to the people who deserve it and not the people who are on 'the top of the foodchain'
    wtf dude, u pay for the track, its not like its free
    ShredderOmega
    Oh, get to ****. Obviously they're pissed. It's called business, it's there to make money. Stands to reason that if it's not making money it's not doing it's job. Welcome to the real world...
    Plugs44
    just so everyone knows, it's spelled ridiculous, not rediculous. it also isn't pronounced that way.