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Given the challenges subscription services already face re:margins, giving away another 30% is game over.

If this stands, the labels are probably going to have to give up on subscription services as a category, or lower their wholesale prices dramatically.

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Rhapsody doesn't have "another" 30% to give. Their margins are probably something like 5%. Crapple is demanding 30% of the sale price, which leaves Rhapsody with a 25% loss.

Since that is economically infeasible, Apple is effectively mandating that they are the only ones who can sell content on their platform.

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