Fortune magazine is reporting that Apple and other online music download providers are awaiting word on a ruling from the The Copyright Royalty Board in Washington, D.C that has the potential to jack up the royalty rate for downloaded songs from 9 cents per track to 15. Apple is having none of it.
iTunes Vice President Eddy Cue says that if the ruling goes through, the iTunes Store will close.
“If the [iTunes music 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,” Cue wrote. “Apple has repeatedly made it clear that it is in this business to make money, and most likely would not continue to operate [the iTunes music store] if it were no longer possible to do so profitably.”
So we wait until Thursday to see what happens. Until then, you can read more from talking heads and analysts here while you download the New Kids on the Block reunion CD.
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