Thursday, October 2nd, 2008 at 5:13 am
Well if The Copyright Royalty Board rule on a 66% increase for sales of digital music today that is what the Digital giant is hinting at. The increase would mean tracks that once cost 9 cents would now cost 15 cents. Of course this increase would have to be paid by one of three entities, Apple, the Record Company or the consumer. Well we all know that Labels won’t pay that the state they are in today, Apple are saying if they incur the increase the ITunes Store will be operating at a loss and well do we as consumers want to pay more?
The royalty increase has been presented by the National Music Publishers’ Association. It will be decided by a panel of Judges who will then set standards for the digital increase, the first ever for the industry that amassed over $1.2 billion in sales last year, growing by 46% from the previous year.
Apple holding onto an estimated share of 85% of the digital market are in the driving seat here as they are adamant consumers shouldn’t have to pay more than their 99 cents just because publishers are looking for more money, so the bad guy in this situation will end up being the labels. Does that come as a surprise?