| Apple threatens to close down iTunes store |
| Thursday, October 02, 2008 at 14:33 by Mark Benson |
In a move which could tarnish the Apple name for many years to come it seems as though the group is threatening to close down its ever popular iTunes store unless the music industry reduces its demands for increased royalties. While currently the royalty payment is 9c per track sold this figure is set to rise to 15c and Apple does not like it. So will Apple really carry out the threat to close the iTunes store?
While the war of words is likely to continue for some time to come it seems inconceivable that the company would actually go ahead and close down the iTunes store. The store is central to a number of Apple products and a main income stream for the group. To close the store would actually be commercial suicide but we seem to be in the middle of a power struggle which each side seems intent on winning.
The chances are that while Apple continues to flex its muscles there will no doubt be a compromise deal at some stage to appease both sides. Quite what form this wood take and how it would be presented remains to be seen but the chances of the iTunes store being closed forever are zero. |
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