said by KrK :

This says it all:

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

Apple's implying that a royalty increase means they can't operate iTunes profitably, and would think about shuttering it. They are bluffing. Obviously, Apple could merely pass along the royalties and therefore the site would remain profitable. It's just they don't want to go over the pyschological price point of .99c. It's a marketing thing. Below $1 = cheap, above $1 = not so cheap in the public's mind.

So, yeah, passing costs along might slow sales down somewhat... but the key is it would still make money. As Apple said, they're in it to make money. Closing iTunes down would actually cost them a huge revenue stream, and therefore, they won't do it. It's just a bluff to make the CRB back down.

In my opinion artists should get MORE and the RIAA should get LESS. Of the .99 cents Apple charges, obviously .09 cents go to the artists.... How much goes to the RIAA and to Apple? That's the key here. I'm guessing Apple probably makes the smaller share, and the RIAA pockets the rest, but I don't know for sure.

Apple should tell the RIAA they need to reduce THEIR cut to allow the CRB increase to go through.