Nice reply. Here is some additional food for thought:
make up the difference between a $5 sale and a $20 sale
This implies that Louis CK makes all $20 form that DVD sale. He stated in an NPR interview that he normally sees zero dollars from a TV special.
The author seems to assume that content owners aren't out to screw the talent and pay fair royalties, etc. This isn't the case. What we can learn here is that the Internet levels the playing field a bit. Contrary to what the author would have you think, all kinds of bands are making more money selling music directly to their audience than they ever could being jerked around by a record label. Yes, they aren't making as much money as a well established act, but they weren't going to anyway.
The author seems to assume that content owners aren't out to screw the talent and pay fair royalties, etc. This isn't the case. What we can learn here is that the Internet levels the playing field a bit. Contrary to what the author would have you think, all kinds of bands are making more money selling music directly to their audience than they ever could being jerked around by a record label. Yes, they aren't making as much money as a well established act, but they weren't going to anyway.