Apple Threatens To Close Down iTunes Should Royalties Payments Go Up

Apple has come out with a strong statement indicating that it may close down its iTunes Store over a row related to increasing royalty payments to artists, for content sold through it.

The US Copyright Board is expected to decide on whether or not to increase the royalty payments by nearly 66 percent at the behest of a request made by the National Music Publishers Association.

Expressing the view of the company, iTunes vice president Eddy Cue remarked that it is unlikely that the company would operate at a financial loss and added that “Apple has repeatedly made clear that it is in this business to make money, and would most likely not continue to operate iTunes if it were no longer possible to do so profitably."

Currently iTunes is the single biggest player in the digital music market with over 85% share and is likely sell close to 2.4 billion songs in calendar year.