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I always thought the age of the internet, especially with modern bandwidths, could be the end of large labels for the music industry (or publishing houses for literature). I understand (to a naive degree) that the labels establish large networks, and complex licensing with public avenues like the radio or concert halls. It is also interesting that that most self published artists get the semi-derogatory term of "Indie-artist", and that there may even be a public opinion which has been molded into expecting a "quality filter" through labels. The question I always come to is how big can you get without a label? and will there ever be a day when artists have full creative control of their craft? This would mean that the artist would need to value and understand business practices, distribution methods, contracting, etc. [edit] and the artists that do appreciate this seem to start labels (see epitaph records or Bad Boy Entertainment) |
But...there are some exceptions!
There are certainly a handful of examples of responding to the last question you pose - re: being independent and achieving mainstream success. The ones that I find the most relevant are CHVRCHES (unsigned, SoundCloud got them attention, eventually had their pick of labels) and Macklemore (independent, used major label distribution services though). Also Skrillex - his label had no interest in his bleep-blonk-screech-BASS DROP tunes and he set it free online and got that avenue going - now he's got his own label and millions in the bank. There are some outlier musicians like Prince who are genuinely contentious with both industry and fan expectations.
I think more and more artists who grow up as 'one-person operations' (think Grimes) will navigate a new business platform. Labels will specialize in these artists, or management teams. Eventually though, there does exist a plateau where it seems inevitable to have to deal with a large entity such as LiveNation or Ticketmaster...neither of which are very well regarded as customer friendly in this day and age - at least not as much as direct-to-fan opportunities. The next 10 years should be interesting both in the US and globally.
Oh, and in my opinion, artists tend to start labels as a compensation mechanism to get more power for their own business enterprise, and potentially profit from the success of others signed (see: Cash Money / Young Money Records).