A software giant Apple threatens to shut down its iTunes music download site as a row broken out in America over plans to increase online music royalty payments by 66% (from 9c to 15c a track).
The extra cost would be met by music download sites like iTunes, the record companies or passed on to the consumer.
According to Apple officials, if iTunes were forced to absorb any increase in the mechanical royalty rates, the result would be to significantly increase the likelihood of the store operating at a financial loss – which is no alternative at all.
Apple has repeatedly made clear that it is in this business to make money, and would most likely not continue to operate iTunes if it were no longer possible to do so profitably.
The popular iTunes download site is the driving software behind the iPod music player. If the iTunes music download site were to be shut down, then people would not be able to download any more tracks on to their iPods from the internet.
iTunes is the world’s most popular online music store with eight million different tracks to choose from, giving it an 85% share of the digital music market.