We all like to think of record companies as idiots, and indeed they have
shown themselves to be so many times in the past.

But I think there is a more rational reason why they only offer lossy
downloads:
1). To offer lossless would require them to pay for more bandwidth.
2). To cover the cost of the extra bandwidth, they'd have to charge more
for the lossless option.
3). But 99% of their customer base couldn't give a rat's about the
difference between lossless and lossy, and would therefore never pay the
extra.
4). Conclusion: there is simply no business case at all in offering
lossless.


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