iTunes Money Goes Straight to the RIAA
Despite all the perceived success of the new pay for download services nobody is making any money out of the 99c a song model except the RIAA. The Register have quoted Steve Jobs as saying that almost all the money goes straight to the music companies.
Steve has admitted that they view it as a loss leader in order to stimulate demand for the iPod and other Apple devices. With other services not putting strong emphasis on sales of other devices they could be making large losses.
So the few dollars that you part with for you iTunes sales are going straight into the hands of the RIAA. Something Downhill battle have been trying to bring to users attentions for some time slamming claims that iTunes is good for artists. They have slammed it as an "unfair business model onto a new medium".
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DownHill Battles Anti-iTunes page is here