Buying Music From Anywhere and Selling It for Play on the Internet

[SOURCE: New York Times, AUTHOR: Robert Levine]
The Orchard is seeking to make money by purchasing music from small independent and foreign labels, and then distributing it to digital music services. In most music stores, CDs of, say, Chinese or Kenyan pop music would be consigned to the world-music bin as a good will gesture. But the economics of online stores is changing the financial calculations of the music business, making it profitable to sell a relatively small number of copies of a song, as long as a compact disc is not manufactured and distributed. So instead of trying to sell millions of copies of hundreds of albums, the standard music industry strategy, the Orchard hopes to sell hundreds of copies of thousands of albums. In that way, the company is anticipating that sales will follow a pattern known as "the long tail," in which a large number of only marginally popular items can eventually produce significant revenue.
http://www.nytimes.com/2006/01/09/technology/09orchard.html?pagewanted=all
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