LiveBand essentially goes along to concerts (with the approval of the record company of course), records the show, does some mastering then uploads the tracks to their site for people to purchase online and burn to their own CD. So the consumers gets a copy of that "special" show they went to, the record company gets another income stream and the musician hopefully gets a few bucks from the process too. The biggest positive I can see to this though is from the marketing perspective. I am constantly bailed up by friends telling me about the "awesome show" they went to last week and, like looking though someones holiday snaps, its never quite as exciting for me as it is for them. With a service like this I can actually hear the recording, get a feel for the band and possibly become a convert.
Its a very simple concept and one that I can certainly see taking off once their list of acts starts to build up but I am honestly surprised that the record companies failed to come up with this themselves rather choosing to whine about lost sales every chance they get.