Thanks for taking the time to educate me in my own specialist subject but I gave up reading when I got to this bit
"Most of the costs you mention are connected to the production an sale of physical cd's, not the digital sale of music."
What percentage of this supposedly thriving artist-friendly market is currently digital in Europe? 15%? 20% ?And of that 15% - 20% how much of that traffic is not handled by Apple? 2%? Less?
In any case costs like mechanicals, printing, video, photography, tour support, promotion, marketing, the massive expenses associated with distribution, international development / licensing all still apply.
Do you know what aggregators charge for digital distro? Do you know how to get a record reviewed on Pitchfork or AMG or played on Late Junction or Echoes or XFM or KCRW? Do you know how to get your music released and marketed on another continent? Do you know how much print you have to give away to support a club tour? Do you know what it costs to record and release a cover version or any piece of music that is owned by a publisher? Do you know how to clear a sample or the use of a copyrighted image? Do you know what it costs to go to MIDEM or PopKomm or to send a band to SxSW? Do you know what Amazon charge to sell your music through their Advantage programme or what they take for selling downloads? Do you know how to get an American work permit or how much of tour revenue is withheld by German tax authorities? Do you know what it costs to rent a splitter van or hire a sound man/woman? The list is endless.
And how thriving can a musical culture be that requires massive state subsidy? And who do you think is fit to arbitrate the distribution of that subsidy?