Michael Jackson is the First to Sell 1 Million Downloads in a Week
thenextweb.com
thenextweb.com
From that I extrapolated that you can make a lot of money if not more money from a bunch of micro purchases.
I don't own any MJ music, but I like at least 5 songs enough to buy them. (Only reason I didn't is lazyness in getting around to clean up my music collection and having it all on my computer etc.)
I always assumed Apple was like Wal-Mart, having the upper hand in negotiation and knowing how to use it. Maybe that's only the case for independent artists?
Wal-Mart on the other hand can stock underwear or TV's or food from pretty much anyone, so they hold all the cards and can pretty much write their own deal.
Still, Apple has some control as they basically own digital music market so I would imagine at this point, the labels don't have a viable 'plan b'.
MJ probably had different deals throughout his career, but I would guess that even $700 million is a low estimate of his earnings.