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The MP3 Economy : where does your $1 go?

Neowin · Jun 22, 2003 06:20 EDT with 3 comments

Interesting story, highlighting how little recording artists see...

"The going rate for downloading songs from online music services like Apple's (AAPL) iTunes Music Store, MusicNet, Pressplay, and Rhapsody is about $1 a pop. Yet the economics of recorded music sales haven't changed much since the vinyl era -- despite the fact that digital files cost very little to produce and distribute. So how much of your buck makes its way back to the artists? Not much, though it's clearly a better deal than they get from piracy."

The artist gets about 12%, the label gets 30%, and the website gets 40%. A nice, fair, even split.

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