Even that last sentiment oversimplifies the economics. The C.W. is that rapacious labels took an undue share of the proceeds from artists, so that buying a CD was essentially just subsidizing a middleman.
But it turns out, most major-label albums never recouped, and the artists kept the advance regardless. Labels served a similar function in commercial music as VCs serve in startups: they'd subsidize near-market wages for 9 money-losing bets in exchange for large proceeds from one breakout success.
But it turns out, most major-label albums never recouped, and the artists kept the advance regardless. Labels served a similar function in commercial music as VCs serve in startups: they'd subsidize near-market wages for 9 money-losing bets in exchange for large proceeds from one breakout success.