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If I didn't think I'd end up murdered in my sleep, I'd set up an indy download site at 25 cents per song. Since the artist only sees 10-25 cents per album, I should have no problem signing up bands.
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I am convinced, sooner or later Apple is going to do this one way or another. I'm not sure how they're going to avoid the mp3.com syndrome of piles and piles of utter shit but it will be done and it will happen. Smaller labels, then garageband, it's a matter of time.
For now I prefer to by the miniscule amount (2-4 albums a month) of strictly independant music I do buy on CD, I would like the convenience of Apple's iTunes store (I use a powerbook and an iPod) it's not in europe yet so it's not even an option. I seriously doubt any of what I buy will be on there anyway. Kinda like CDs anyway. I can re-rip them to higher and higher quality lossy formats till storage gets to the point I just just FLAC or raw WAV anyway and the cover art is cool.