iTunes Losing Money

Your 99c belong to the RIAA - Steve Jobs. This article in The Register is a little cynical sounding but it opens with a quote I like:

Wasn't the Internet, this weightless kingdom of bits and bytes, supposed to make distribution costs just vanish?

The author of this article seems really deeply angry at major record labels and possibly just angry in general. He also seems totally bewildered at some basic ideas in business. But I think I sympathize in that I find this whole iTunes universe totally bizarre and unnatural. To me it seems too much like the old decidedly F'd up model dressed up to look like something new. Maybe it'll stick, but right now it just feels like a step backwards to me and that technology + progress is going to lay the smack down on it any day now.