[Fyron]

"For all his complaints about iTunes and Steve Jobs, Clark's problem really lies with the labels. iTunes, Napster, Virgin Digital, Wippit and co. are all retailers - performance royalties are negotiated by the labels and artists' managers, not by the retailers."

The pricing Apple dictated was 79 cents to the label and 20 cents to Apple, where the label gives out the standard royalty rate to the artists... The proportions really aren't that much different from CDs sold in physical retailers.