CRB votes against digital music royalty rate rise, so iTunes survives
The Copyright Royalty Board (CRB) in America has voted to keep royalty rates on digital music downloads at the current rate, and has refused requests to increase royalties from 9 to 15 cents a song.
The National Music Publishers Association (NMPA) had asked for the royalty rise, but Apple opposed it. Apple had threatened to close its iTunes Store if the rate rise went through, as we reported here yesterday. "We're pleased with the CRB's decision," says Apple's Tom Neumayr.
The CRB also rejected a call to cut the royalty rate to 4.8 cents per song, and agreed to peg it at the current rate of 9.1 cents a song for the next five years.
The Digital Media Association, which represents online music stores including Apple, Amazon.com and Best Buy, welcomed the outcome.
"Keeping rates where they are will help digital services and retailers continue to innovate and grow," it said in a statement.
Comments
This is all good and well for teh short term, but Apple as well as anyone knows that it's all change and probably quite soon. The delivery model for 'legal' music will mimic the pirate model and offer the subscriber FREE music for as long as they are paid up on a flat fee. This makes all the sense in teh world and will become, how it is! Some will come to think that this how we always done things in these parts!
The Artists are already changing the way they get their music to the delivery mechanisms. The older ones will have to ask their kids how!
Dont be greedy, be smart.