I recently started learning about Magnatune, the online record label whose taglines are "we are not evil" and "the open music record label". I first heard about them in a Wired article, Music Label Cashes in by Sharing.

Magnatune looks like they are doing good stuff, with try before you buy music streaming (full albums), sliding scale prices on full album downloads, Creative Commons licensing for non-commercial uses, straightforward commercial licensing—all with the artists getting 50% of the sales / royalties. Also, their contracts with artists are non-exclusive (so, for example, an artist could also sell CDs through CD Baby).

This looks right!