Jedi Star

Apple has lately announced that it will shut down its popular online iTunes store, and this comes days before the royalty rates are to be announced.

Copyright Royalty Board has requested a 66% increase in the price of online music which will increase the rates from 9 cents to 15 cents a track.

The rise would mean that either Apple or the consumer would likely have to bare the rise in price. As its highly impossible that the the record company would bare the grunt.

Apple vice president for iTunes “Eddy Cue” said “If iTS (iTunes Store) were forced to absorb any increase in the mechanical royalty rates, the result would be to significantly increase the likelihood of the store operating at a financial loss”

Aplle made it clear that it is in the business to make money and if conditions are not suitable for it to grow it will consider shutting down the iTunes Store.

Industry majors are saying that the reason Apple wants to sell digital music cheaper is to increase the sale of iPods.

Apple believes that the increase in rates will affect the sales figures from Thursday if the rates are increased as such a rate. As sales of digital songs and albums rose 46% last year and with the sales of CD’s falling sharply, this also supports that people are more and more going for digital music.

Apple representative Digital Media Association which also includes major online music services has put across that the rate should be 4.8 cents a track.

Apple as it has a major strong hold on online music sales, holds all the cards.

This will only help Apple to get a soft corner with online users as it will put across Apple’s image as someone who is ready to fight against major label companies to keep the prices down for the consumers.

Apple this year will increase its shareof online music share to a record 85% with a sale of 2.4 bn songs.

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My Space and ( yourspace ) has now been given ears. What i am trying to say is Myspace has unveiled a new music store which enables its users in US for now to listen to music online and also lets them buy the music online.

They can download it from the music store of partner Amazon to enjoy it on their Ipods and Iphones

It is high time that Myspace has jumped in this field as most of its competeters already had jumped onto this field and also it going to link Myspace and new and established bands.

And all the Big time music labels – Sony BMG, , Warner and EMI have colaborated in this and also independent Group “The Orchard.”

Industry pundits are calling it a move to snub Apples’ iTunes which is the most dominant player in the online music market.

The major players are frustrated with Apples’ refusal to charge higher prices for more popular tracks. On Myspace (Amazon’s music store) tracks start at $0.79 (£0.42).

To start with there are only a few Tracks available but as the partner labels open up their archives it will grow to many millions.

All the tracks will be free of Digital Rights Management software which is the copyright protection mechanisms.

THe new of mysoace venturing into online music hit the news stands early April 2007.

Myspace has played a big role in bringing new artist upfront and launched their careers and also Five million Bands have their online profile on Myspace.

Users will also have access to ringtones, concert tickets and merchandise.

So i think the users should be able to enjoy their space online.

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