Is I tunes a legit place to download music? I would think that if I tunes is a legal method of downloading music, part of the fee would go to paying them off in some way.
The RIAA allows nothing. They are simply the gophers for record companies. iTunes and all these other groups simply contact copyright holders and negotiate these deals. RIAA is a lobbying/interest group, nothing more. So no, they dont make money from online music.