Two interesting pieces of news highlight the trouble online stores will face as the price of legal song downloads approaches the price of illegal downloads (which is zero).
On Monday, Amazon.com announced an extremely generous revenue-sharing program for affiliate sites to resell MP3s from the Amazon MP3 store. Amazon will give them 20 percent of the revenue from all sales until January 1, 2008, after which it will drop to 10 percent. Since Amazon sells some downloads for as low as 89 cents, this means it'll have only 71 cents left to pay to the copyright owners. I … Read more