Apple's iTunes Store To Remain Open As Royalty Rates Are Frozen

Apple's iTunes store will remain open after the Copyright Royalty Board decided against calls to increase royalty payments made to artists. 

Apple had threatened to close its digital music outlet after The National Music Publishers' Association (NMPA) requested that the cost of a single track jump from 9 cents to 15 cents.

The rise would have been absorbed by either digital music stores like Apple, record labels or the consumer.

At a meeting yesterday (October 2nd), the Copyright Royalty Board decided to freeze the current rate at 9.1 cents for another five years.

Apple's threat to close iTunes came to light after documents were published ahead of yesterday's meeting. In a testimony 18-months ago the company said it would never allow the store to operate “at a financial loss”.

Although the NMPA's calls for a rise were turned down, the organisation welcomed the decision as “an important milestone for the music industry”.

Apple also told the BBC that they were pleased with the outcome.