Apple had threatened to shutter its iTunes service if royalty rates on downloaded songs went up, but it didn’t happen. A brief AP article notes that the royalty rates were left unchanged for digital downloads and CDs — 9.1 cents per song.
Meanwhile, a writer over at the Motley Fool calls BS on the idea that Apple would ever have shut down iTunes, and explains why. A commenter disagrees, saying Apple could take a short-term revenue hit.
Categories: Digital Music · Music
Tagged: apple, Digital Music, itunes, royalties
Best Buy is going to buy Napster for $121 million in cash. The purchase is seen as a move to compete with iTunes, the 600-million pound gorilla of online music sales and number 1 music retailer in the US.
I’m not surprised that they’d fork out $121 million cash for Napster. Even now it’s still one of the better-known names on the Internet and it’s a quick way into the online music sales market. What I am surprised about is what they’re not spending their cash on. I mean, what is Circuit City’s market cap right now? $275 million?
Categories: Digital Music · Music · Retail
Tagged: best buy, circuit city, Digital Music, itunes, Music, napster
