Update: iTunes store stays open as royalty fees don't increase

In a progression that surprised almost no one, Apple's iTunes store will not close down, as threatened, due to royalty fee hikes. The Copyright Royalty Board's Oct. 2 ruling against the increase has been highly anticipated since 2007 testimony from iTunes Vice President Eddy Cue claimed that the popular music platform "most likely would not continue to operate if it were no longer possible to do so profitably."

Industry analyst Aram Sinnreich told Rolling Stone that even though the iTunes store recently surpassed Wal-Mart as the top U.S. music retailer, "Apple doesn't make its money from selling iTunes songs, and it's a break-even business anyway." His commentary, in this regard, more than insinuated that Apple's claims regarding how a royalty hike would jeopardize their financial standing was a bluff of sorts that the Copyright Royalty Board did not call.

But the decision stands regardless, and Apple's iTunes store will live to see the light of day with its current royalty fees. Stay tuned for new, upcoming developments in (and we're quoting ourselves here) "the Miltonian clash between online music retailers and the folks who supply their product."

Related links:
News: iTunes unveils top-selling albums, singles of '07
Apple.com/iTunes
Wired: Want better music? Don't stiff the songwriters

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