ITunes Store Closing

Is the iTunes store closing? Current speculation says that it might. In a statement to the Washington DC Copyright Royalty Board (CRB) in 2006, Apple voiced its unwillingness to go along with a rate hike on downloaded media, stating "If (iTunes) 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," adding that Apple "(...) most likely would not continue to operate (iTunes) if it were no longer possible to do so profitably."¹

Fast Facts

Proposed rate increase: 9 cents to 15 cents a track¹

Apple currently pays an estimated 70 cents of every dollar it collects per song to record companies¹

Alternatives: Apple favors an 8 percent commission to artists rather than fixed royalties²

Hypothetical: Apple has released no official statement regarding a possible iTunes store closure