A New Kind of Record Company

The record companies have a problem with music downloaders. That is, people who are downloading music for free over the Internet. People are frustrated with the high costs of Cd's, and it doesn't help knowing that the record companies give very little money to the artist from CD sales. With the decline in CD sales we should look at what the consequences of this are. Could it be the end of the record company as we know it if this trend does not decline? How will artists make their money?
If I were in a band a record companies did not exist as they do today I would make my money by performing live and selling Cd's at my shows. As I could I would sell other merchandise at my shows and I would use the Internet as a form of promotion. Myspace has become a great tool for bands to use to promote themselves. It also allows people to hear there music. On my website I would sell my music in CD and MP3 form, but also offering a couple of free songs.
It is also possible that a new kind of record company will form. It would be nothing like we know today. There is already a system that maybe be a step toward the next evolution in the music industry. Magnatune Records is a new kind of "record company" that has non-exclusive agreements with artists and gives them 50% of the profits. The music is all available online for the consumer in MP3 format. Magnatune is a good idea. Whether it survives or really takes off is only for the future to tell.