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The likely reason for all this is Apple not wanting to be accused of engaging in anti-competitive behavior. It’s illegal to use your market power and financial position to sell products below cost and thwart real competition in the market. This is why they offered higher royalties later and no royalties for 3 months. It was designed so artists would get the same amount in the end but unfortunately have to wait 3 months to start getting in.

Apple’s reverse in direction is interesting. Perhaps they feel the risk is not as high as they were expecting. Apple gets sued every day of the week, but something like this could be very costly. Perhaps they know the financial benefit outweighs the risk.

Claiming Apple doesn’t care about artists is absolutely ridiculous. Except for a few high-profile critics, artists view iTunes as saving the music business and allowing even small-time artists to make a living without needing to sign with a label (other than with one of the labels that specialize in this sort of thing and for which artists don’t need to qualify).



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