An article on Billboard Magazine, was released yesterday about the state of the music industry. They talked how major labels are giving artists sometimes up to as much as 10 million dollar deals. We are in the middle of a Gold rush in Urban Music. pointed the the rise of viral music videos, the increase of streaming revenue.
I really liked the article, but it did seem to be a little bit biased and quite frankly, soft on the record labels. Everything in the article was accurate, however, they left out the fact that major record labels are becoming LESS valuable to everyone. The lack of leverage that came with the internet allowed artists and their friends to essentially cut the middle man. In this case, the middle man being the old uncultured record executives, who’ve multi-million dollar companies have been reduced to glorified banks in the eyes of the independent artists. Their desperation, in ADDITION to the rise of streaming revenue and urban music has led to the extreme record contracts.
You can read Billboard Magazine’s full article here