Indie vs Major
When it comes time for a musician to sign a deal, they always have to make the big decision: major label or indie? The musician is placed in the middle of a bargain exchange network. There was a time when major labels held significantly more bargaining power than independent labels. Let’s say that there is a musician, A, who must decide between an independent label, B, and a major label, C. B can offer A more artistic control and development time, but can’t offer A as much money or promotion. C has a lot more money, promotion, producers, and other resources available. However, all of C’s resources will also be split among D, E, F, and G. If A deeply valued artistic control and attention the most, B would be the better option. However, if A is more concentrated on money and success, C is the better option even if C’s resources are also split among musicians D, E, F, and G.
Now, in the era of social media, B is gaining more bargaining power. B still offers more artistic control and attention. B might not have as much money, but B doesn’t have to worry about that as much, anymore. The focus has shifted from radio to SoundCloud, which offers free uploads. Artists can be promoted on Twitter and blogs. They don’t need million dollar promotion campaigns. Artists can develop Internet followings with just their talent. They can take the time to cultivate free EPs and make money touring off of them. In this Internet Age, musicians now possess many of their own resources. They don’t need a label to handle everything for them; they just need a label to help them along the way. B’s offer has the most value now. Independent labels are becoming the best option. Artists don’t need to give up control for success. They can now have both.
Source:
http://noisey.vice.com/blog/are-major-labels-broken-azealia-banks-mia-childish-gambino-2014