A couple of reasons. Firstly, because in a traditional record label deal, not much of the money actually finds its way into the artists' pockets.
"In a typical deal, the band gets thirteen or
fourteen percentage points. We’d have to give a few of our own points (four perhaps) to the producer of our record (producers typically get a fee and points). Then we’d be down to ten points. Before calculating the value of those ten points, however, Electra would subtract a large percentage of the gross sales to account for free goods, records given away for promotional and other purposes. Thus, the amount on which our 10 percent was calculated would be reduced by 20 to 25 percent. So we’d be down even further, perhaps 10 percent on 75 percent of the wholesale album revenue. If our CD was sold in stores for fifteen dollars, the band’s share of the revenue might be something between fifty cents and a dollar per CD. Would we get to keep it? No! ..."
A more optimistic (and modern) document which contrasts options such as the iTunes store (which gives the band perhaps 60% of the proceeds and the customer a DRM encumbered copy of the recording):
Secondly, because digital distribution of unencumbered music is in many ways a better experience for the consumer than purchasing physical CDs or DRM encumbered tracks.
And thirdly, and probably most importantly, because piracy is so convenient it's usually my first port of call when I'm wondering what an artist sounds like. I can spend less than a minute typing a search into $COOL_PRIVATE_TRACKER, and in a few minutes be listening to high quality mp3's in my choice of media player.
It's only after I actually decide that I like (and will ever listen to) the music that I would wish to give some money to the artist.
I should point out: when artists do sell their music as direct downloads, I buy them.
Perhaps the simplest restatement of this idea is simply a directory / store which sells DRM unencumbered digital media, passes as close to 100% of the profits to the artist as is possible, and falls back to displaying search results for alternate editions if they're not represented.
"In a typical deal, the band gets thirteen or fourteen percentage points. We’d have to give a few of our own points (four perhaps) to the producer of our record (producers typically get a fee and points). Then we’d be down to ten points. Before calculating the value of those ten points, however, Electra would subtract a large percentage of the gross sales to account for free goods, records given away for promotional and other purposes. Thus, the amount on which our 10 percent was calculated would be reduced by 20 to 25 percent. So we’d be down even further, perhaps 10 percent on 75 percent of the wholesale album revenue. If our CD was sold in stores for fifteen dollars, the band’s share of the revenue might be something between fifty cents and a dollar per CD. Would we get to keep it? No! ..."
source: http://www.google.com.au/url?sa=t&source=web&cd=1...
A more optimistic (and modern) document which contrasts options such as the iTunes store (which gives the band perhaps 60% of the proceeds and the customer a DRM encumbered copy of the recording):
http://www.bradsucks.net/archives/2007/05/22/where-your-musi...
Secondly, because digital distribution of unencumbered music is in many ways a better experience for the consumer than purchasing physical CDs or DRM encumbered tracks.