Terry McBride’s Nettwerk is perhaps best known for funding the legal defense for a 15-year-old music downloader sued by the Recording Industry Association of America (RIAA). But the label, which counts Barenaked Ladies and Dido on its roster, has also set about transforming itself in to a digital distributor, on the cusp of pulling 70 percent of sales from online. For his efforts, the UK’s MusicTank organisation asked McBride to write a paper advising on the transition from paid to free tunes. In this video, he tells me more about his findings, why $0.25 is the ideal download price and why Avril Lavigne is due a big digital pay day...

Save the date for our EconMusic event on September 23 at London’s Natural History Museum

• @ MusicTank: Lavigne To Rake $2 Million From YouTube Plays
• @ MidemNet: Peas’ Will.i.am: Industry Must Abandon CDs, Skip DRM, Modernize To Survive
• Nettwerk Productions Gets $650K From Canadian Government To Boost Digital Efforts