What good is having their own label going to do for Apple?

I'm not sure how good it would do Apple... but I trust they understand that.

It is, however, very good for artists. It seems that this is the new model for music, even though it has been, and will be, resisted by the music studios.

There has been one path for artist forever: get a deal with a studio. That model is ineffective and cumbersome. Selling your music directly and immediately on iTunes (the world's largest music store) would be good for aritists.

Good question. Maybe Apple sees all the money going to Universal and the likes and wants in on that side of the action.

And wouldn't it be funny if music on the apple label was sold on the iTMS with DRM?

There has been one path for artist forever: get a deal with a studio. That model is ineffective and cumbersome. Selling your music directly and immediately on iTunes (the world's largest music store) would be good for aritists.

Starting a label is basically trying to become a studio. This has nothing to do with getting music directly on iTMS (since they can do that already).

"Starting a label is basically trying to become a studio. This has nothing to do with getting music directly on iTMS (since they can do that already)."

Yes, independent artists can get their music on iTunes without a studio/label. But with out that, they are also on your own for CDs, concerts, etc. And once you sign with a label for that stuff, they also control your distribution. If they don't want you on iTunes, it's probably not going to get there. If this is true, it would get artist they label support they may want/need and give Apple a sure source of content for iTunes. Right now, if Universal wants to pull it's music, I'm guess their artists have no say in the matter.

The big question is, as a studio, will Apple treat their artists any better or do more to develop talent (as opposed to creating a string of one-hit-wonders), or will they become just another studio?

It's a ballsy move too.

DANGER: uninformed speculation to follow:

It might be an attempt to counter the recording industry pressure on Apple to gouge its customers currently buying tracks from iTunes, by setting up an alternate model for how to deal with recording artists. Question is, would the labels withdraw from iTunes if Apple starts picking off their artists?

DANGER: uninformed speculation to follow:

h***, I can do better than that. One has to wonder about the legality (FTC-wise) of setting up a system where you are both the label, distributor, and seller of the same product. The movie studios can no longer run their own theaters. Is Apple possibly facing the same type of threats if they get into this business?

If Apple's proposition to the artists were "you do your own production and promotion and we'll give you a sales outlet and (possibly) put your CD's into the channel for a smaller cut and fewer strings" everyone (except the existing labels) wins.

The record labels lock bands in because of the "huge cost of production and promotion" -- with current technology, it's completely possible for a band to do that themselves.

Apple offers artists a distribution network for their work, Apple gets content for their store, the artists keep their rights and they split what would have been the "traditional" record label's cut.

.....and six to twelve months down the road we will have a Microsoft Records trying to compete. You heard it here first, and you know it will happen.

i seem to remember a spat between the beetles and apple being resolved a little while ago.