QUOTE(AliL @ Apr 16 2008, 14:53)

I don't know anything about the internal workings of the music industry, but I would have guessed that they'd be paid by the labels (out of the hefty chunk of the revenue they took from the original vinyl recordings in the first place), and not on a per-unit-sold basis as their work is a one off job.
Please correct me if I'm wrong as this is purely speculation but I'd have guessed that this is how it works.
I think you are correct about that. I think audio engineers and people involved with pressing the CDs just get a flat rate. I think that the producers and artists are the ones payed some percentage of the profits from the sales. It is a small percentage but still. That being said, people who get payed a flat fee are still having money taken away from them. By using they gray websites, you are taking money away from the record companies. The record companies then in tern reduce the salary of these people working on flat fees. Remember that the record companies take away from the bottom before they take away from the top. I am not sure how long this process takes or if it is serious but still, it can theoretically happen. That is why I have stayed away from these types of websites for a long time. I would rather spend $0.70 more a song, get a known quality, and know that the artists and other people who worked on the album will be getting their money.
QUOTE(pdq @ Apr 16 2008, 15:14)

It was my understanding that these sites don't encode the files themselves but depend on their customers to encode and upload them in exchange for some free downloads. If that is the case then you could easily get some very low quality 192 kbps mp3 files.
I think you are right. I remember the days of allofmp3 and many of their files were encoded at 384kbps with Lame mp3. They considered that the "source" mp3s. They then transcoded down to whatever setting you wanted. Later on they started having FLAC sources (or so they said) but there were still many albums in which the source was 384kbps mp3's. Transcoding down isn't my idea of high quality audio and definitely not something that I would pay for no matter how inexpensive.