The Wholesale Forums

[iBuy]

http://news.bbc.co.uk/2/hi/technology/7645537.stm

Its worrying quite a few people over at Apple HQ this afternoon!

Matt

[MacLover]

Is this just the UK or whole of EU? I don't want my Deutsch & Italia accounts to go UK one I can live with as I barely use it but my Deutsch & Italia ones are in use everyday.

Edit: According to Fortune, the Copyright Royalty Board in Washington D.C. is expected to rule on Thursday about a request by the National Music Publishers' Association to increase royalty rates for downloads from online music stores such as iTunes. The request asks for an increase in rates from 9 cents to 15 cents a track. It should be noted that this group represents the copyright holders of songs and is distinct from the record companies themselves.

Understandably, Apple is opposed to the rate increase and, in a statement submitted to the board, even suggested that Apple might close iTunes altogether:

"If the [iTunes 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," Cue wrote. "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."

Apple claims that the market would not accept an increase in the per-track price and that overall sales would decrease. The Fortune article writer doubts that Apple would take such drastic measures as closing the iTunes Store as Apple has used it to leverage hardware sales of iPods and now iPhones.

Article Link

Looks like it is worldwide

[iBuy]

Yeah, it will be a worldwide shutdown.

Been looking at the figures, goes something like this:

Apple sells a song for 99c, 10c on marketing and so forth, 80c goes to the record labels of which 9c goes to the artist, the 9c left is apples.

I'm not usually a supporter of big busineses like apple, but I can completely understand where they are coming from. The labels do bugger all, they arent responsible for the marketing, maintaining and selling of the songs, they just sit on their fat arses watching the money role in. And now they want more money? Take the extra 6c out of their 80c!

The 99c a song branding is what apple is based on. Would you buy a song if it was $1.05? Just doesnt sound right.

Well, we will see how it plays out, if anything big happens, im sure it will hit the news.

[uhafmail]

Rubbish, we pay £0.79 - for the same song, so the $0.06 is nothing. The UK has been overcharged for their songs on itunes since it was launched!

[lemonwonder]

Add 6 bloody cents for gods sake apple. I'd rather pay $6 dollars a month (100 songs from itunes.. thats a lot) rather than have nothing!

[hardwareheroes]

They wont let it disappear thats for sure - its integral to the iphone also

[consultant]

There are two hopes of Apple closing down one of their top money spinners, and Bob died a few years ago!

They would be stupid to cut something which is essential to the success of a majority of their hardware!

[greedyboy]

Originally Posted by iBuy

The labels do bugger all, they arent responsible for the marketing, maintaining and selling of the songs, they just sit on their fat arses watching the money role in. And now they want more money? Take the extra 6c out of their 80c!

Are you sure?

Who goes out there, finds new talent, produce the records, make the videos, spend millions marketing new stuff, suffer the losses when a band flops?

They are a business like all other businesses and have costs, staff etc. Most importantly their product is based on speculation. If it doesn't sell they lose a considerable amount of money!

[TYLOLA]

Originally Posted by iBuy

The labels do bugger all, they arent responsible for the marketing, maintaining and selling of the songs, they just sit on their fat arses watching the money role in.

Totally disagree with you there!!! Having helped with record labels within the dance music genre, i can tell you now it's very hard work & for peanuts!!!

As a label, you have to do some serious time consuming research on the right tracks & the right artists... if your a digital based label, you then have to push promos constantly to DJ's, labels, promoters, forums, online streaming e.t.c... if you don't promote the track hard enough then you won't get many sales! you can't just expect itunes, beatport, expressbeats or any other online store to push the tune, you have to do it yourself!!! posters, flyers, word of mouth, facebook, myspace e.t.c... majority of producers (being one myself) are on 20 - 30% royalty & a payment sum upfront. even the artists push the track to get more sales & more money - it's a whole co-operation matter.

Steve

[uhafmail]

Although i can see exactly where your coming from there has been loads of success with bands promoting themselves. A great example is Arctic Monkeys, they were probably the first Myspace band to properly make it big - there first single was the fastest selling debut single ever...