How does Zune Pass/subscription services pay bands?

[Jackfrost50]

I have had Zune Pass for about 6 months now and am absolutely clueless on how bands are compensated for their music. I've searched everywhere on the web for an answer, so now I'm turning to AbsolutePunk.

Does anyone know how Microsoft and other subscription music services like Rhapsody or Napster pay these bands for people downloading their music?

[3eb23]

Performance Rights Organizations (ASCAP, BMI, SESAC) collect the royalties and give it to the artists.

[thesafeword]

How do you think Bill Gates got so rich?

[Jackfrost50]

Wouldn't that make subscription services a MASSIVE loser short-term? I mean, people go on those things and download THOUSANDS of songs in months, but they only get around $15 per month from each subscriber. I could see that working long-term, but all the subscription services must take a HUGE hit up front for this.

[zerock]

i was wondering the same thing. But yeah it probably makes profit in the long run while microsoft pays up the labels to keep them happy at the moment... hence that's why apple hasn't implemented subscription stuff, they don't like paying upfront.