@daedalean --
Lets be very clear. THERE IS NO STANDARD UNIVERSAL CONTRACT for music royalties.
There is NO STANDARD CONTRACT. Even the leasing forms you will obviously bring up as standard can be modified by either party.
If this model doesn't work, why is Apple iTunes making money? Is Apple doing it as a charity? Are Pandora and Spotify too?
The ignorance on your side and how that ignorance allows you to completely dismiss something that is working in real life is astounding.