iTunes Licensing Model
EMI just ported the business contract of physical distribution (which presumes manufacturing costs, breakage, inventory and other real costs). So the music label unilaterally captured 100% of the upside from moving the business online and shared none of it with the artist.
Having just finished reading Free Culture, I guess I should not be surprised by this habitual behavior. But it seems so old school.
My channel and fulfillment relationship is now with Apple. EMI provides no value to me in this modern context. Yet they take more than 10x what they share with the artist.