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What purpose to record labels serve? by subbywan2010-05-12 16:31:58
  they are publishers, like the dead tree by voxwoman 2010-05-12 20:05:55
book publishers, but of music.

In the past, before the 1980's, the record labels were the "editors" - they discovered real talent, nurtured them, invested in them by giving them the money to devote themselves to their craft, and also paying for them to use state of the art, expensive recording equipment, owned by other people and operated by yet another set of professionals who were trained to set the sounds in the best possible way using the technology at hand, so they could be reproduced.

In the 1980's "businessmen" decided to run the record labels and the music they decided to promote wasn't as good. They were afraid to take risks and instead helped "safe bets" and the music really got bad for a decade or so.

I read a bit of the article that Snate linked to and while I can't argue that more albums are being made nowadays, I can certainly make the point that a greater percentage of them are badly recorded, simply because the bands doing the recording can't afford the best people to produce and record them.

And I think your summaries of the music business are somewhat naive, but I'm heading off to bed so I can get up for my day job, because the music I wrote and played sure isn't putting food on the table.
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