Online music avoids rate hike

by admin October 3, 2008 at 11:54 am

The veiled threat to shut down iTunes if royalty rates on downloaded songs were hiked has been averted.

The Copyright Royalty Board (CRB) opted to keep the status quo and turned down a request to increase royalties from 9 to 15 cents on songs bought online.

The National Music Publishers Association (NMPA) asked for the rise while Apple opposed it and said it could result in iTunes being shut down.

“We’re pleased with the CRB’s decision,” said Apple’s Tom Neumayr.

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