# Apple to music industry..



## ekim68 (Jul 8, 2003)

*Apple to music industry - Its our way, or iTunes gets the bullet!*

The National Music Publishers Association wants to see an increase in the royalty rates paid to its members for songs purchased through online music stores (the association wants the rates raised from 9 cents to 15 cents a track). Apple doesnt like the sound of this and is willing to shut down iTunes rather than raise the 99 cents a song price or absorb the higher royalty costs. Is this all just hot air, or could Apple really shut down iTunes?

http://blogs.zdnet.com/hardware/?p=2670&tag=nl.e550


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## TechGuy (Feb 12, 1999)

It's a bluff -- there's no way Apple would stop selling music. That said, the members are also not going to get an additional 6 cents (over 60% increase) for each song.

According to the same article:


> Let's put the numbers into perspective. Out of ever dollar collected by Apple, 70 cents goes to the record company, out of which 9 cents goes to the copyright holder.


Why doesn't the record company take part of that extra 6 cents out of their 70% cut? I don't think Apple is going to take the extra 6 cents out of their 30, but I think they'd swallow some of that long before they'd stop selling.


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## ekim68 (Jul 8, 2003)

TechGuy said:


> It's a bluff -- there's no way Apple would stop selling music. That said, the members are also not going to get an additional 6 cents (over 60% increase) for each song.
> 
> According to the same article:
> 
> Why doesn't the record company take part of that extra 6 cents out of their 70% cut? I don't think Apple is going to take the extra 6 cents out of their 30, but I think they'd swallow some of that long before they'd stop selling.


Well said.. I thought it was a shot over the bow.. After that, negotiations...


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