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You've done a strong job of describing what I felt years and years ago, and have come to learn is the lay of the land still in the music business. Labels have done a fantastic job of maintaining their gate-keeper status and of being able to break new artists into the mainstream. What didn't change with the internet is, partially kidding here, that 14 year old girls decide what's going to be popular. Outside of that, it's pretty much table scraps. 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). |
Financially I think artists like Skrillex (EDM producers in general) are incredibly lucky. Production costs are practically zero. You buy a DAW and some monitors and you can do everything at home on your laptop. You don't need to pay a band, all revenue is yours. And on top of that touring costs are minimal (a midi controller and a laptop) so you're extracting the maximum profit from each show. If you want a financially successful career in music this is probably the most sure route to take.
Edit: A lot of people responding are bringing up the point that production costs for most genres are now relatively low. While that's true when it comes to actually making money from the music that's much easier in electronic music for the reasons I gave above (one person, very little gear to drag around, no band to pay).