iTunes Downloads Future Challenges

by | 7 Oct, 2008

appleApple launched their Internet music download services some over 5 years ago. Following this move, the music industry has tried to end their efforts, even before they started. Indeed the industry has recently imposed an increase on their $0.99 model. The copyright royalty board i angling to increase the amount it collects for each song download by $0.06 cents per unit. This increase equates to a 66% increase on the current royalty model.

Apple claims that this increase is not possible for the service to remain profitable. Apple indicates their business aims to make money and if this service cannot do that, then they will close the business. Let’s not forget the post over the past few months that suggest that in light of rapidly declining CD sales, music downloads is a growing business today. Closing iTunes would have a significant hit to artists, labels and publishers.

The report posted on Cybergrass today suggests that the music industry remains based on greed. If the current Wall Street market collapse is not lesson enough, nothing will be.

Apple Computers has faced more than one down turn in its time and while a permanent shutdown of iTunes is unlikely, a short term shutdown in protest is a possibility.

It is also unlikely that Apple would make all the iPods and downloaded tracks they have sold to date worthless. The battle lines have been drawn…

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