Apple Battles Music Industry Over Royalty Changes

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UPDATE:

The royalty rate will remain at 9.1¢; there will be no increase and no change in the price of our beloved 99¢ songs! The federal panel that met earlier this week to decide the fate of the 99¢ song download has reached a decision and word has spread quickly! The board originally gave a written decision to Apple and was supposed to announce publicly Oct 6th their decision, but good news always travels fast!

The 99¢ Music Download Will Remain No Matter The Decision, Says Apple CEO, Steve Jobs
It has been an ongoing battle between Apple and the music industry, what is the right price to pay for royalties on the 99¢ songs? Apple and others like it, such as Rhapsody, EMusic, Amazon, RealNetworks, and Napster, would like to see the 9.1¢ royalty to be lowered to 4¢, while the music industry would like to see it closer to 15¢ per downloaded 99¢ song.
A federal Panel of judges appointed by Congress met today to decide if the music industry would see their royalty increase or not. Many expect the board to opt in leaving the royalties unchanged, There will be a written decision provided to both parties today and will make it public on Oct. 6th.

The biggest dispute is how to distribute the proceeds from online music sales, the number of people who access their music selections online are increasing, while the purchase of physical CD’s see a decrease in sales. Apple and many others have crossed over and acted as conduits between the music industry and consumers, and in turn have kept their share.
Online music sales from companies such as Apple, have increased the sales of iPods, and iPhones, allowing the devices to be easily loaded with the owner’s favorite music. There have been many benefits to the online music sales, including helping record labels to maintain profit even in the declining sales of their CD’s.

Record labels such as, EMI, Sony BMG, Warner Music Group, and Universal music Group currently get 70¢ per 99¢ song download. Apple and others like it have helped keep the music industry alive, during a time where people are getting it for free, rather than paying for it. The rate is already too high, an increase could cause these companies to close their doors for good, or raise the rate of the downloadable songs.
Apple stands strong in saying that even if it is decided that the increase will go forth, they will not change the 99¢ price per song.

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