An amazingly direct example of the patronage model:
Discover Mercedes-Benz
Mixed Tape -- exclusively selected music available as free
downloads
When you go there what you get is a playlist that renders in the browser via a Flash app. The visuals are sparse and clean in an upscale eurotrash style with the Mercedes logo displayed prominently but not garishly. Visitors can download any or all of the tracks as unencumbered MP3 files; if you hang on to the songs, you will presumably continue to associate them with Mercedes.
The musicians are getting paid, their patrons have a realistic revenue model, and there's no DRM, CD industry, or compulsory licensing. Not bad.