It’s about the relation with the fan

If the fans feel they are dealing directly with the artist, their willingness to pay increases. Bandcamp embodies this 100%, Topspin can embody this if the artist chooses to utilize it that way.

Amplify’d from latimesblogs.latimes.com
According to Francis, fans paid an average of more than $5 for the 84-cent album, a trend of generosity that Bandcamp founder Ethan Diamond said extends throughout the site, even as overall music sales continue to slide.
“I think a lot of it is the fans’ perception that they’re supporting the artist and they want to pay more when that’s what they perceive,” he said. With donations, “fans are paying about 50% more than whatever that minimum is.”

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Beatles being paid directly by iTunes in deal

or not?

Amplify’d from www.reuters.com
According to industry sources, iTunes is paying the Beatles’ royalties from digital download sales in the United States directly to the band’s company, Apple Corps, and is paying the songwriting mechanical royalties directly to Sony/ATV Music Publishing, which controls most of the Beatles’ song catalog.
Under a standard contract, a label issues an album, licenses the songs from music publishers, collects all wholesale revenue from the retailers and then distributes royalties to the artist and the publisher.
For superstar artists, the royalty typically equals about 20%-25% of retail revenue. So in the case of iTunes’ Beatles sales, where tracks are sold to the merchant for about 90 cents and are retailed for $1.29, a standard contract with a typical superstar royalty rate of 20%-25% would pay the Beatles about 18 cents to 22.5 cents per track sale.
But because iTunes is making royalty payments to the Beatles and Sony/ATV, EMI may be treating its deal with the digital retailer as a licensing pact.

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Major Labels in the USA fly the flight of the Dodo

If these claims are true, than Major Labels in the USA have only themselves to blame if they can’t get rid of Apple iTunes Music Store supremacy.

But what about Rdio? Did they have to come up with the same huge advances?

Amplify’d from www.hypebot.com

However, Forrester research analyst Mark Mulligan suggests that a few of the major labels may have set their advances so high that it would be impossible for Spotify to meet their demands without endangering their path to profitability. In other words, in a weird way, we should rejoice that Spotify didn’t launch, as it could’ve been a near suicide mission. As soon as we got Spotify, we could’ve very well lost Spotify too. Sadly, Europe may be the safest place for them now.
Spotify might be safe, but, one day, the record industry may wake up sorry.

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