Well, maybe. But I've also heard a lot of industry types saying that it's very hard to make money from music downloads - maybe that's just spin.
Depends. If you're an artist in the record label system, then you probably don't make a lot of money from downloads, because you're being buttfucked by your record label. In a lot of cases, they'll be applying the same formula for calculating royalties to your online sales as your physical ones, even though the overheads are non-existent.
If you're a record company type, then you're either a liar or clueless. I know someone who runs their own label and I have huge fondness for him, but his cluelessness about online business exasperates me to the point of wanting to shout at him!
Put it this way: Apple is one of the largest music retailers in the US, physical
or online, and they have always stated at the Q&A sessions that follow their quarterly financial reports that they run the iTunes store at, or just over, breakeven because they view it as a means of driving iPod sales rather than a revenue stream in its own right.
So ... someone, somewhere is making some money. If it ain't Apple, and it ain't the artists ...
Cheers!
Jim