I own my own Record Lable, now digital label. I myself understand that "Slippage" in the industry however, I do not agree with "Illegal" downloading.
Yet, revenue does not stream in from "digital Pay" models. It is a suppliment to the overall stream of Income for the label.
My label, is known world wide, is carryed on over 50 paysites, from Itunes to Beatport, djdownload, msn, etc. My release are played on Sirius Sat. radio as well as countless other Radio Stations world wide. I hardly see revenue from "Play".
The main source of Revenue is from Movie Scores, Tv/Commericals, and me playing live on tour.
So, as part of my business model...I give away the music. I have promo list, of fans and people, who get the music when I release it for Sale. This is more of a marketing ploy. I do not expect big profits from basic downloads.
The Model of the past is no longer, as in the current Stock Market and Economy. Things are changing fast and old sources of revenue are going away and being replaced by more efficent sources.
The major Labels, whom I do not feel sorry for, waited almost 5 to 10 years before recently embracing the MP3. Their empires are falling and they are loosing control over their artist.
In fact, GAGA, RADIOHEAD, and countless others are taking their own destiney...and forgoing Major Labels. The day's of the label paying artist little and keeping most of the profit, after expences were payed back...is over.
The music industry is about finished. Now, its back to "tallent" and perfermance going forward. Sell out Clubs and Venues, make big dollars. Make a big track, you have a million downloads, good deal. However, not every song will pull in millions.
The evolution is now in the hands of Music Lovers.
No sympthy from me to the Majors but I disagree with Illegal Downloads. .99 cents for most songs...and 7 bucks for an EP. Far down from 25-40 bucks a cd/ep and you could never buy singles, unless it was a dance mix for like 5 bucks.