In the music business it’s all about recouping (making back) what you spend. This becomes even more important when your are a major artist signed to a major label.
On average an artist is looking at $300k-$1,000,000 , and in some cases even more, just to create your favorite album or songs. Labels need a cut of album sales because they allowed that artist to use that money to create the songs.
Looking at iTunes prices, $1.29 or $0.99 just for ONE SONG is nothing compared to the cost of an albums production. This is based on using average costing producers ad writers.
This is also why artist have to create merchandise, and tour the country for 3 months at a time, night after night, incase albums sales are stale based on illegal downloading.
It’s pretty pathetic how us fans, and consumers fret over a few bucks to listen to the latest piece of art our favorite artist slaves over for 9 months to a year, just to give us the perfect songs.
A lot of people don’t understand the record business, and why labels seem to be so greedy.
Well above is a slight snapshot.