iTunes: Death of Record Companies

Check out this short Business 2.0 piece showing how each dollar collected per song is divided up.  Artists get 12 cents out of a dollar.  The music download service (i.e. Apple) gets 40 cents.  That leaves 48 cents up for grab as music download industry emerges, expands, and consolidates while the real world music distribution business shrinks.  I expect record companies will start to dwindle during the expansion phase as they start losing artists to the music download industry.  There will still be middlemen, but record companies will be left with peddling only oldies.

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