Interview with Ian Gillan

That's consistent with what I've heard. Most of a band's income is in touring. If album sales are a drop in the bucket, why all the bitching about downloading? Because it's mostly the (american) record companies who are bitching. It doesn't take a rocket scientist to figure out where the profits from album sales go.
 
Trans-Siberian Outcast said:
That's consistent with what I've heard. Most of a band's income is in touring. If album sales are a drop in the bucket, why all the bitching about downloading?
Because tour promoters take album sales in account when they make offers to bands. And remember that bands usually play where they sell the most.
Less sales = less tour opportunities, playing in smaller venues, etc.
It doesn't stop a very known band like Deep Purple from touring and making a living out of it, because even if the new album sells nothing promoters know that there will still a lot of people who will show up at the gig. But that does not apply to all the bands.