Music Label Cashes in by Sharing

“Every track in Magnatune‘s 50-artist catalog is available via Shoutcast radio stations and streaming MP3 feeds. Listeners can download, swap and re-mix songs as much as they like…The idea is to let users try music before they buy, and when they do, to give half of every sale to the artist.”

Buyers can choose to pay anywhere from $5 to $18 an album… The website now brings in $15,000 to $20,000 a month, 80 percent of it from downloads, the remaining 20 percent from licensing deals.”

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