02 October 2008

Why Apple Might Close the iTunes Store

Vice president for iTunes, Eddy Cue:

Apple has repeatedly made clear that it is in this business to make money, and would most likely not continue to operate iTS if it were no longer possible to do so profitably

While the consensus on the web seems to be that this would never happen, I think a strong case could be made for Apple exiting the music sales business - if it did become unprofitable - and turning the iTunes store into a distribution platform for a current rival such as Amazon. Such an arrangement would allow Apple to keep the iTunes/iPod integration and lose the continued hassle of RIAA negotiations and DRM enforcement.

Via BBC News.