The National Music Publishers' Association (NMPA) are going at iTunes, demanding a 66 percent increase on royalty rates for digi music sales, hiking their share of the 99 cent a track gross from nine cents per track to 15 cents per track. Which doesn't seem to unfair, right?
However, rather than taking a wee loss from their outrageous profit margin, or raising the price of an MP3, iTunes has made threats to shut down their services if NMPA's request is approved.
"If the [ 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," said iTunes Vice President Eddy Cue in a statement. "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."
SCRAPOLA!
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