The veiled threat to shut down iTunes if royalty rates on downloaded songs were hiked has been averted. The Copyright Royalty Board (CRB) opted to keep the status quo and turned down a request to increase royalties from 9 to 15 cents on songs bought online. The National Music Publishers Association (NMPA) asked for the rise while Apple opposed it and said it could result in iTunes being shut down.
"We"re pleased with the CRB"s decision," said Apple"s Tom Neumayr.
In testimony submitted to the CRB 18 months ago, but only brought to light this week, Apple executive Eddy Cue said: "Apple has repeatedly made clear that it is in this business to make money and would most likely not continue to operate iTS (the iTunes Store) if it were no longer possible to do so profitably." The CRB also rejected a call to cut the rate to 4.8 cents and in the end agreed to peg it at 9.1 cents a song for the next five years.