Do we need record companies anymore? This is a question that a lot of people who really love music find themselves asking at one point or another these days. However, that might not be the question that needs to be asked. In an era when anyone can, in theory, record and put things on-line for downloading if not make their own CDs, the question is not whether we necessarily need record companies anymore but why do the major labels exist?

Artistically, the arguments against the mainstream record labels are obvious. From having to sign away control of your music to the constant push in some cases to change the artists to make them make acceptable to mainstream tastes, there are valid arguments to be made against signing to the big labels (many of these have been discussed in other articles on this thread). For many struggling artists though, the dream of getting their music out to a wider audience compels them to make this move. However, in the quest for a bigger audience, sometimes their work becomes a far cry from what they envisioned when they first started creating music. Combine this with the fact that the artist actually pays for everything (the record company advances major labels offer is a loan where the label recoups all costs before the artist makes a cent off their music) and there is a lot of reasons why doing it yourself or finding a good independent label seems to be a good thing for an artist.

So why would an artist consider signing with a major record label? One reason is the lure of wider distribution some artists think they'll get by such a move. However, the label is under no obligation to release the album, much less promote it to the point where it gets said wider availability. In addition, people are fed the illusion of celebrity by much of the mainstream media and it appears to be favorable to many compared to the job they might not enjoy. What isn't mentioned is the economic factors an artist faces when waiting for the advance to get paid off so they can actually get paid off what they've made (in some cases, there have been artists on major labels working day jobs when not on tour). If you're successful then the majors may give you a push but the image you may be forced into to get that success may be far removed from how you actually view yourself.

There's a lot of talk about the decline in CD sales, especially among young people. The major labels want to point the finger at downloading and the issue of P2P networks

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