Practice Management

Do you like the iPod?  I like the iPod.  But, will it be around here much longer?

According to Wired, Apple is playing a game of chicken with music publishers about the royalties paid for their tunes in which Apple is threatening to just close the popular site down.

The Copyright Royalty Board, a board created by the Library of Congress, is to hand down its decision on these rates soon as music publishers asked for an increase in royalties on digital downloads from 9 cents to 15 cents per song.

Apple refuses to increase its songs beyond the 99 cent costs.  If the rate goes through, therefore, Apple states it will not make money.  Apple says it will not lose money.  The iTunes music store will become unprofitable.

Apple says the third option if the royalty increase passes is just to shut down the site.  The theory goes that if publishers think they want more money, let then live without no money for a while.