According to an article in Wired Magazine:

“Apple is under pressure from the four major labels to change its pricing model to a tiered pricing structure,” said Susan Kevorkian, an IDC audio analyst. “The way the labels are pressuring Apple is by withholding DRM-free downloads from the service … [while] cultivating other online music services, most notably Amazon’s MP3 downloads store.”

“If Apple tires of butting heads with the labels, it could eventually cut them out of at least part of the equation by forming its own record label to keep a portion of the estimated 65 cents it currently pays out to the labels for each song sold.”

And here’s the kicker of this whole shebang.

By 2012, digital music is projected to account for 40 percent of music sold, according to InStat. If Apple holds onto its current market share, it will account for more than one-quarter of all music sales by its ninth birthday. Not bad for freeware.

Are record labels in trouble if they mess with the beast that is Apple? Sounds to me like it’s time for artists to have a solid online presence more than ever. What do you think?

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