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Comment on Who Needs Music Labels? Last.fm Starts Paying Royalties To Unsigned Artists

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I tend to think record labels aren't entirely worthless, though the barrier to entry is getting quite small. They serve to promote bands and act almost like vc's by taking a risk and funding the bands that can't afford to get a good sounding record made. This isnt just a software problem. It involves using good equipment, having rooms that don't destroy the sound of the instruments, etc. It costs money.

Do you think the price-it-yourself model Radiohead used could work for other bands? Radiohead was already huge, thanks to the labels promoting their previous work.

I don't mean to undermine the efforts of last.fm. I just wantto point out how sensational the post's title is.

But the problem was/is, big label's stranglehold on the market created an environment where the risk and reward don't match at all. The musician (entrepreneur) is completely shafted by the big labels (VC).

And while distribution, marketing, recording, etc are certainly all important they can be obtained through other methods without giving up 90% of your earnings. For more information see here: http://news.ycombinator.com/item?id=226352

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