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iTunes to go offline?

Apple could close the iTunes store if an upcoming ruling goes against it.


A ruling is expected later today (October 2) from the US Copyright Royalty Board on an application by the National Music Publishers' Association to raise the royalty fees paid to its members on songs purchased from online music stores including iTunes.



The NMPA wants to increase rates by 66 per cent, from nine cents to 15 cents per track. Apple, however, wants a decrease, to 4.8 cents per track
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iTunes has previously stated that they would not stand for an increase. Last year, Vice President Eddy Cue admitted that a change could force iTunes to operate at a financial loss, "which is no alternative at all."



Cue made very clear that the store, estimated by some analysts to have an 85 per cent share of the digital music market, would not continue "if it were no longer possible to do so profitably."



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