Fear not, iTunes fans. Rumors about the death of iTunes were a tad premature.
The Copyright Royalty Board (CRB) ruled Thursday that the royalty rate for permanent downloads, like those found via Apple's iTunes, will remain at 9.1 cents per download, according to an organization of music publishers.
The CRB also ruled that rates for physical CDs will be 9.1 cents while sellers of ringtones will be charged 24 cents per selection.
For each 99-cent song sold on iTunes, Apple hands over about 70 cents to the record companies. Those companies must give 9.1 cents, or a mechanical royalty rate, to songwriters, composers, and publishers.
“We're pleased with the CRB's decision to keep royalty rates stable," Apple said in a Thursday statement.
The National Music Publishers' Association (NMPA) was pushing for a rate closer to 15 cents per song “because the costs involved [with digital downloads] are much less than for physical products," NMPA president and CEO David Israelite wrote on the group's Web site.
The Recording Industry Association of America, meanwhile, wanted something closer to 5 cents, according to NMPA.
Apple was fiercely opposed to this proposal, and threatened to shut down its iTunes store if the CRB approved a royalty rate the company deemed financially ruinous.
The Copyright Royalty Board (CRB) ruled Thursday that the royalty rate for permanent downloads, like those found via Apple's iTunes, will remain at 9.1 cents per download, according to an organization of music publishers.
The CRB also ruled that rates for physical CDs will be 9.1 cents while sellers of ringtones will be charged 24 cents per selection.
For each 99-cent song sold on iTunes, Apple hands over about 70 cents to the record companies. Those companies must give 9.1 cents, or a mechanical royalty rate, to songwriters, composers, and publishers.
“We're pleased with the CRB's decision to keep royalty rates stable," Apple said in a Thursday statement.
The National Music Publishers' Association (NMPA) was pushing for a rate closer to 15 cents per song “because the costs involved [with digital downloads] are much less than for physical products," NMPA president and CEO David Israelite wrote on the group's Web site.
The Recording Industry Association of America, meanwhile, wanted something closer to 5 cents, according to NMPA.
Apple was fiercely opposed to this proposal, and threatened to shut down its iTunes store if the CRB approved a royalty rate the company deemed financially ruinous.
