[nerme]

Here's the very best point that is brought up: "And musicians need them to survive so we can use them as banks. Even bands like us who do most of our own promotion still need them to write checks every once in a while."

While the major labels had their faults, the DID act as investors for musicians.

This was probably their most important function, and it seems as if though the majority of Music 2.0 proponents do not know this.

This isn't the only thing they don't know about a functioning music industry.

The next time you're listening to a Music 2.0 presentation, stand up and ask the dude if he knows where the closest band rehearsal spaces are, where the closest guitar repair services are, who manages local acts, who does booking, who is currently promoting what genres and at what venues... really, I could go on and on about a lot of details that some messiah of the digital arts is most definitely unaware of.

[ABrandt]

I'm not exactly sure what you are referring to as "Music 2.0" (possibly the likes of pandora and last.fm?) but I do agree that the investment function of record labels is often over looked. As someone heavily involved with researching the industry, as well as helping local bands, I am constantly amazed with the parallels between entrepreneurism and being a musician.

There needs to be the musical equivalent of the lean startup theory. Just as swarms of young entrepreneurs are embracing the bootstrap, so should bands. Yes the labels could probably tell you where to get your Fender repaired, but so can Google. All functions of the traditional record company are becoming obsolete in comparison to digital methods. I envision an industry where musicians retain artistic freedom and everyone actually gets paid (check out Steve Albini's classic rant on how most artists don't make much of anything www.negativland.com/albini.html)

[nerme]

Yet another parallel between programming and musicianship... :)

I think any musician knows where to go to get their guitar fixed or where to find a rehearsal space. Those sorts of things are pre-requisites to having any sort of future in the industry.

By "Music 2.0" I'm referring to any number of articles related to music having to be free, being a loss-leader for t-shirt sales, etc... in these people's minds, bands form out of the ether and well-recorded albums rain from the heavens above!

Businesses involved in the digital commodification of music need to have a firm understanding of how music is made and performed in order to have any measure of success.

[pyre]

> While the major labels had their faults, the DID act as investors for musicians.

Investment under the some of the most onerous terms ever made.