Internet-based Publishing for Independent Bands?

Cultural Sublimation asks: "My brother's band is putting the finishing touches on their new album. They have published via a small independent label before, but this time they are considering going for Internet-based distribution. They are quite open to fresh ideas: they are even thinking of releasing the album into P2P networks and using the tip-jar model for revenue. It would also be nice to give people the possibility of buying online the physical CD with the artwork. They are therefore looking for a publisher which: a) won't take away their rights; b) allows for distribution via P2P (perhaps even providing a tracker for torrents); c) facilitates the tip-jar model; and c) allows physical CDs to be shipped on demand. What are fellow Slashdot readers opinion on this?"