The Register.Remember how the digital music revolution was supposed to tip the balance away from big record companies, and towards the people who actually create the music? A vignette being played out behind closed doors suggests that digital music companies are only too keen to ally with Big Music when it comes to screwing creators.
At issue is the revenue split between composition and sound recording royalties. Typically, this has heavily favoured the owners of sound recordings by about 85:15, 90:10, or more - a number which astonishes outsiders. Why isn't closer to 50:50?
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Fast forward to the Brave New World, and you may expect to see the creator's value proportionately increase. Alas, the digital music companies are doing little to redress the balance - even though they can afford to. According to Fortune magazine, Apple threatened to close down its iTunes Music Store if the composer's share rose from nine cents per song to 15 cents per song. The threat was made in a submission to the US Copyright Royalty Board, the arbitrator which sets the rate for statutory licences.
Apple and the Digital Music Association had wanted to screw composers even harder: pushing for a reduction in the rate to 4.8 cents per track, or six per cent of "applicable revenues". Since Apple barely makes a profit on its iTunes store, that would be six per cent of bugger all being returned to the people who actually make the music.
Cheering them on are the major record labels.
Very nice, Apple.