Apple 'holding its customers to ransom'

British web entrepreneur not happy with threat of iTunes shutdown

Apple has said it will shutdown its iTunes store if a planned increase of online music royalty payments goes ahead.

The computing giant has waged war with the music industry by threatening to shut its store, unless royalties paid out to musicians stay the same.

At the moment musicians claim nine cents of every track sold. This is set to increase by 66 per cent to 15 cents (around 5p to 8p).

Bottom line before customers

Speaking about Apple's warning, the chief executive of iLoaded, Gary Morris, has slammed the news, explaining that Apple was looking at "the bottom line before its customers" and "holding its customers to ransom".

While it's unlikely that Apple will shut its store, considering its business model is based on consumers buying an iPod, logging into the store and buying music for it, it does show the power of the company in a music industry that is effectively in turmoil.

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Marc (Twitter, Google+) is the content team lead for Future Technology, where he is in charge of a 14-strong team of journalists who write many of the wonderful stories that end up on TechRadar, T3.com and T3 magazine. Prior to this he was deputy editor of TechRadar, had a 10-month stint editing a weekly iPad magazine, written film reviews for a whole host of publications and has been an integral part of many magazines that are no longer with us.