I take exception, if we talk solely about the entrepreneurial risk of a producer! In my previous post I looked at the situation, when you have established contacts and work with mutually trusting people - which does not create a win/win, but rather a loose not / loose not situation.
So: Whilst there are many great producers, the usual situation for the artist, be they in Classical Music or in Jazz (don't know about Rock) looks like that:
YOU deliver the master and the whole caboodle of information for the art work for 0$!
YOU pay the label a lump sum
YOU wave your Royalties whereever the Label has to pay. (Radiostations still pay out to you, as this is legally fixed).
As most Artists cannot afford this, they look for a sponsor or crowdsource or ask Foundations for help. So effectively:
YOU fundraise the production.
I am afraid, this is again not an answer to the question to "how much should a download cost", but I want to put the informed replies of LaserCD and Garylkoh into perspective.
Maybe now is the point to disclose my own interest: I am a violinist. I have produced many CD's for various Labels (mostly german). Recently I have set up an artists label, taking many of above points into account. Our aim is a "fair trade" deal, where all the costs are open to everybody involved.
www.streiffzug.com