“Rather than renewing her contract with her longtime record label Warner Bros., the Material Girl is signing a 10-year, $120-million deal with a concert-promotion company,” the WSJ Biz Blog reports.
All these music industry moves comes at the expense of the former financial and physical infrastructure intermediaries between Artist and Audience.
Labels provide either (usually both) start-up capital and the physical distribution network for musicians. Both those come at an extremely high price, naturally.
But when the internet enables digital and physical distribution, and musical publishing tools can be bought off the shelf for lawn-mowing money, labels lose their monopoly on access to Audience.
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